Legal Framework – NondominiumTwo complementary agreementsCollective agreement between stakeholders jointlyAssociative agreement between stakeholders individually or severally
Collective AgreementCustody – governs creation, issue and exchange of Stock, holds bank accounts and Stock registerStewardship – stakeholders have negative veto rightsCorporate – company limited by guarantee, possibly community interest company (CIC) for asset lock
Associative AgreementUser – pays for the use of productive asset (land, energy, IP)Manager – receives a proportional share in the flow of use valueInvestor – acquires Stock consisting of unitised use value sold forward at a discountComplementary to the collective agreement – akin to a for profit limited companys shareholder agreement
Nondominium - OutcomesA consensual but legally binding agreementNeutral – removes ego and politicsCollaborative - stakeholder interests aligned – no principal/agent problemSocial – shared surplus/ not for loss - relationship- based not transaction-basedSustainable - everyone has an interest in minimising cost of use over time
Stock 2.0 – Back to the FutureStock - an undated credit returnable in payment for use value of productive assetSold at a discount – eg £1.00 of Rental Stock sold for 80p gives an absolute return of 25%Rate of Return is literally the rate at which Stock may be returned to the issuerRate is not fixed, but depends on whether there is a flow and what it is
Stock - OutcomesCompetitive - no compound interestSecure – no default risk, and the more affordable the rental, the more secure the returnLiquid – single asset class, not fragmented by date or interest rateLiquid – Manager will always buy Stock on behalf of Users for redemption at best offer < or = to £1.00
Financing and FundingFinancing – development of new assets; short term; high risk – Stock issued at high discountFunding – operation of completed assets; long term; low risk; Stock at low discountExit - financiers may sell stock to funders and occupiers who Pay it Forward
An Tearman Principles?Principles- Permaculture- Sustainability- Equity- Open Access- Return in moneys worth, which need not be tangible
Getting There from HereInterim Constitution - Participating Founder members Monica, Ludwig, + ? - Associate members – Friends - Initial General Meeting target date for incorporation as a Company Limited by GuaranteeRoad Map - what are the issues? - what is the Critical Path?
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