The Community is the Currency
Chris Cook
Penicuik 19 May 2011
Enterprise Models are Legal and Financial Structures
01/06/10 2
The unseen plumbing of Society
01/06/10 3
Public = State...
01/06/10 4
...funded by taxes and public borrowing
01/06/10 5
Private = Legal Person: Individual or Company
01/06/10 6
'For Profit' Companies are funded by
shares with par value eg £1.00 - Equity
01/06/10 7
'Not for Profit' Companies are Limited by
Guarantee
01/06/10 8
Financing and funding requires Debt - usually secured by a legal claim eg mortgage
01/06/10 9
...giving two conflicting claims over the same productive asset
01/06/10 10
Or an unequal 'partnership' relationship
01/06/10 11
Scots know it's not a case of 'either/or'
01/06/10 12
'Not Proven' is both...or neither
01/06/10 13
A 'quantum' zone of uncertainty
01/06/10 14
There’s a new legal animal out there
01/06/10 15
There are now over 60,000 UK Limited Liability Partnerships (LLP)...
01/06/10 16
...even in the Public Sector, where Glasgow has five municipal LLPs
01/06/10 17
An LLP is a corporate body with limited liability....
01/06/10 18
...and...errrr...that’s it !
01/06/10 19
As far as the Tax Man is concerned it is a Partnership
01/06/10 20
LLPs are being put to very interesting uses
01/06/10 21
Capital Partnership
CustodianCustodian
InvestorsInvestors
UsersUsers
Managers
% %
£
01/06/10 22
Equity Shares - % age shares in revenues or production...
01/06/10 23
Units - redeemable in payment for production
01/06/10 24
Example: “The Art of Flirting” – a film incorporated as an LLP
01/06/10 25
The actors received nth’s of the gross revenues
01/06/10 26
I got 5%...and the producer the rest...
01/06/10 27
But we needed lights, cameras, pizza, coffee
01/06/10 28
Two Capital Partners invested £10k for 20% of revenues
01/06/10 29
If there are any
01/06/10 30
Art of Flirting Partnership
CustodianCustodian
Financial Capital(Investors)
Financial Capital(Investors)
ViewersViewers
Human Capital(Actors, Producer, Me)
% %
£
01/06/10 31
The Capital Partnership aligns stakeholder interests....
01/06/10 32
...but it’s not a magic bullet
01/06/10 33
Conventional finance requires binding contracts
01/06/10 34
Partnership finance requires consensual agreement
01/06/10 35
But there may be no magnetism..
01/06/10 36
...or partners may fall out...
01/06/10 37
A Capital Partnership is not an Organisation
01/06/10 38
...it does not own anything, do anything, employ anyone, or contract with anyone...
01/06/10 39
...it is simply a framework within which the stakeholders self organise ...
01/06/10 40
Community Partnership
CustodianCustodian
InvestorInvestor
UserUser
Manager
% %
£
01/06/10 41
An associative framework agreement for community projects or events
Agreement between stakeholdersIndividually
How does it work?
01/06/10 44
Custodian – asset-holder and steward
01/06/10 45
Company Limited by Guarantee
01/06/10 46
Collective agreement between all Stakeholders
01/06/10 47
User - a Club or Association
01/06/10 48
A Club is Closed because only members have access....
01/06/10 49
...but also Open because anyone consenting to club rules may join
01/06/10 50
Manager – gets things done....
01/06/10 51
...and agrees who does what
01/06/10 52
Community Partnership
CustodianCustodian
InvestorInvestor
UserUser
Manager
% %
£
01/06/10 53
Community Land Partnership
CustodianCustodian
InvestorInvestor
OccupierOccupier
Manager
% %
Rental
16/06/10 54
Community Energy Partnership
CustodianCustodian
InvestorInvestor
UserUser
Energy Energy
Energy
ManagerManager
Energy Pool: Community Mega Watts
Or even NegaWatts of energy savings
Community Media Partnership
CustodianCustodian
InvestorInvestor
UserUser
Service Provider
% %
£
01/06/10 58
Networks of Communities are the future
01/06/10 59
Thank You
16/06/10 60
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