Cross Border Innovation Introducing the Master Partnership Innonet Conference: Breakout Session 4 Chris Cook , Copenhagen 7th May 2009

Hanseatic Microfinance Initiative creat ed two partnership tools 10/06/09

Guarantee Society – sharing risk of non performance 10/06/09

Capital Partnership – sharing production & revenues 10/06/09

Guarantee Society Buyers 10/06/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Value Credit Sellers

Seller’s performance and buyer’s credit supported by a mutual guarantee.... 10/06/09

...backed by provisions into a default pool and managed eg by banks 10/06/09

Guarantee Society Buyers 10/06/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Value Credit Sellers

Potential for networked cross-border Credit Clearing Union 10/06/09

Capital Partnership Capital Partnership Investors Customers Custodian % % £ 10/06/09 Managers

Conventional investment is “Equity” in Limited Companies 10/06/09

....a 19 th Century legal dinosaur 10/06/09

...or “Debt” - loans secured by legal claims eg mortgages 10/06/09

...two conflicting claims over the same productive asset 10/06/09

But there’s a new furry animal out there.... 10/06/09

...the 21 st Century UK Limited Liability Partnership (LLP) 10/06/09

An LLP is a corporate body with limited liability.... 10/06/09

...and...errrr...that’s it!... 10/06/09

As far as the Tax Man is concerned it is a Partnership 10/06/09

It’s an “Open” Corporate enabling partnership working... 10/06/09

... even without a written agreement 10/06/09

Capital Partnership – direct ‘Peer to Peer’ investment in productive assets 10/06/09

Capital Partnership Capital Partnership Investors Customers Custodian % % £ 10/06/09 Managers

“ Equity Shares” - % age shares in revenues or production... 10/06/09

...or Units - redeemable in production 10/06/09

Example: “The Art of Flirting” – a film incorporated as an LLP 10/06/09

The actors received “nth’s” of the gross revenues... 10/06/09

...I got 5%...and the producer the rest... 10/06/09

...except that we needed lights, cameras, pizza, coffee...... 10/06/09

Two Capital Partners invested £10k for 20% of revenues.... 10/06/09

...if there are any 10/06/09

Art of Flirting LLP Art of Flirting Partnership Financial Capital (Investors) Viewers Custodian % % £ 10/06/09 Human Capital (Actors, Producer, Me)

Everyone was on the same side 10/06/09

The Capital Partnership aligns stakeholder interests.... 10/06/09

...but it’s not a magic bullet 10/06/09

...there may be limited agreement or conflicting expectations.... 10/06/09

...and partners may not see eye to eye 10/06/09

Capital Partnerships and Guarantee Societies are not Organisations ... 10/06/09

...they do not own anything, do anything, employ anyone, or contract with anyone... 10/06/09

They are simply frameworks within which stakeholders self organise.... 10/06/09

Hanseatic Master Partnership Master Partnership Financial Capital (Money, IP etc) Users Custodians (National) % % € 10/06/09 Human Capital ( Developers, Operators)

… .is a simple new framework for innovative cross border development

‘ Public’ = State and ‘Private’ = Corporation problems can be addressed in a new way...

....transcending borders through networked two way “contrats de societé”.... 10/06/09

...rather than national or international institutions and hierarchical structures...

...and one way contractual relationships – adversarial “contrats de mandat” 10/06/09

Hanseatic Master Partnership Master Partnership Financial Capital (Money, IP etc) Users Custodians (National) % % € 10/06/09 Human Capital ( Developers, Operators)

Thank You 10/06/09