Residual Assets
From FairShares Wiki 3.x
Residual Assets are the assets that remain in an organisation after all creditors have been paid. In a FairShares Company / Co-operative, residual assets are distributed in a way that is defined in Clause 54.
Residual assets are calculated as follows:
[shareholder funds] + [accumulated profit and loss account] + [assets – liabilities]
Worked Example – Calculating Residual Assets
- Shareholder Funds - £345k
- Profit and Loss Account - £200k
- Assets - Liabilities - £100k
Residual Assets
£345k + £200k + £100k = £645k
Residual Assets may be distributed partly as a Community Dividend upon dissolution if the organisation has received grants from Community and Public Funding bodies.
Return to the FairShares Glossary.
