4. Legal Framework – 'Nondominium'
Two complementary agreements
Collective agreement between stakeholders jointly
Associative agreement between stakeholders
individually or severally
5. 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
6. 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
7. 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
9. 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
10. 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
11. 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'
12. An Tearman Principles?
Principles
- Permaculture
- Sustainability
- Equity
- Open Access
- Return in 'money's worth', which need not be tangible
13. 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'?
