Founder Share
From FairShares Wiki 3.x
The Founder Share of Surplus is new to FairShares V3.0 and was introduced because of the practices of early adopters. It is calculated using the Founder Share Fraction defined in Clause 40, and can only be changed by Special Resolution in General Meeting.
The Founder Share is set by Founders during the formation of the enterprise using the FairShares Rules Generator. The range of possible values is from 0.0 to 0.20 (depending on legal form).
The Founder Share is calculated as follows:
[Surplus] x [Founder Share Fraction]
Each member's proportion of the Founder Share is allocated as follows:
[Founder Share] x (Member’s Founder Shareholding / All Issued Founder Shares).
For example, if the Founder Share is £11,000, and there are four Founder members with 1 share each, each Founder member would get:
11,000 x (1/4) = £2,750.00.
See also
