Founder Share Fraction

The Founder Share Fraction is new in FairShares V3.0 - its introduction is based on the established practices of early adopters of the FairShares Model.

From V3.0 onwards, the fraction is set during the creation of rules in the FairShares Rules Generator, and this provides for a range of choices from 0.00 to 0.20 (depending on which type of rules are being generated).

A default of 0.10 is recommended in companies. A default of 0.00 is recommended in cooperatives. A default of 0.20 is recommended for partnerships.

In associations, this fraction (as is the case with Labour and User Shares Fractions) determines the amount of money the Founders (as a group) can allocate to social objects outside board meetings.

The V3.0 rules generator does not permit rules to specify more than 0.4 for Investor Shareholders, and a sets the minimum payout to Labour and User Members at 60%. Typically, 70% or higher is paid out to people active in FairShares companies, and 75% or higher in FairShares cooperatives.