An Tearman Partnership

Simply does it

Chris Cook

An Tearman 22nd September 2012

Custodian

Payment

Investor Manager

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Occupier

Enterprise Model

Structure - Stakeholders

- Custodian

- User

- Manager

- Investor

Legal framework – Nondominium

Investment instrument - Stock

Legal Framework – 'Nondominium'

Two complementary agreements

Collective agreement between stakeholders jointly

Associative agreement between stakeholders individually or severally

Collective Agreement

Custody – governs creation, issue and exchange of Stock, holds bank accounts and Stock register

Stewardship – stakeholders have negative veto rights

Corporate – company limited by guarantee, possibly community interest company (CIC) for asset lock

Associative Agreement

User – pays for the use of productive asset (land, energy, IP)

Manager – receives a proportional share in the flow of use value

Investor – acquires Stock consisting of 'unitised' use value sold forward at a discount

Complementary to the collective agreement – akin to a 'for profit' limited company's shareholder agreement

Nondominium - Outcomes

A consensual but legally binding agreement

Neutral – removes ego and politics

Collaborative - stakeholder interests aligned – no principal/agent problem

Social – shared surplus/ 'not for loss' - relationship-based not transaction-based

Sustainable - everyone has an interest in minimising cost of use over time

Investment Instrument - Stock 1.0

Stock 2.0 – Back to the Future

Stock - an undated credit returnable in payment for use value of productive asset

Sold 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 issuer

Rate is not fixed, but depends on whether there is a flow and what it is

Stock - Outcomes

Competitive - no compound interest

Secure – no default risk, and the more affordable the rental, the more secure the return

Liquid – single asset class, not fragmented by date or interest rate

Liquid – Manager will always buy Stock on behalf of Users for redemption at best offer < or = to £1.00

Financing and Funding

Financing – development of new assets; short term; high risk – Stock issued at high discount

Funding – operation of completed assets; long term; low risk; Stock at low discount

Exit - financiers may sell stock to funders and occupiers who 'Pay it Forward'

An Tearman Principles?

Principles

- Permaculture

- Sustainability

- Equity

- Open Access

- Return in 'money's worth', which need not be tangible

Getting There from Here

Interim Constitution

- Participating 'Founder' members Monica, Ludwig, + ?

- Associate members – 'Friends'

- Initial General Meeting target date for incorporation as a Company Limited by Guarantee

Road Map

- what are the issues?

- what is the 'Critical Path'?