Investor Share
The Investor Share of Surplus is calculated using the Investor Share Fraction defined in Clause 43, and can only be changed by Special Resolution in General Meeting.
The V1.x default for the Investor Share Fraction was:
- 0.5 in User Co-operatives and Worker Co-operatives
- 0.3 in Social Enterprises and Social Co-operatives
From V2.x, and explicitly in V3.x, the default Investor Share is 0.30 in companies and 0.25 in cooperatives, but it can go as high as 0.5 in companies, and 0.4 in cooperatives. The User and Labour Share are still calculated and invested in projects that benefit Labour and Users rather than investors. This fulfils ICA Principle 7 - Concern for Community.
The Investor Share is calculated as follows:
[Surplus] x [Investor Share Fraction]
The Investor Share is allocated as Investor Share Dividends to Investor Shareholders (see Clause 44)
See also:
Return to FairShares Glossary
