Company Operations

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forbin
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Company Operations

Post by forbin » Sun Jan 12, 2014 1:27 pm

Operations policies for the ship's company, Tempest Hawk Ventures and Shipping, Ltd, are kept here.

This is a "no discussions" topic. Official company policies, principles of operations, and simple accounting principles go here. Errors will be corrected by editing. Revisions, changes and additions will be indicated by adding new posts and editing to add pointers to earlier entries indicating they have been amended or superceded.

Discussions specifically about the posts here go in "Company Operations Discussion".
Bookkeeping entries are kept in "Accounting".
Discussions about the bookkeeping entries go in "Accounting Discussion".

General discussions of these topics, and ship's finances in general, go in the old "Raven's Coin Finances" topic.
John B. | Elliott von Rossveldt, ship's CCS officer. | 2 5 9 B F B | 8 7 9 B F B

forbin
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Joined: Sun Dec 01, 2013 6:16 pm
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Stocks and Shares

Post by forbin » Sun Jan 12, 2014 2:20 pm

The value of a share of stock will begin at Cr 1/share, and will float according to the following formula:

[Ship's funds] / [Shares outstanding] = Value per share

This does not include the value of liquid assets, but they are not ignored. Instead of trying to track their value, if we need to increase ship's funds, we can decide to sell an asset, and the proceeds are added to the general fund which then affects value per share. This equation also ignores the value of the ship itself and the financing of it, to avoid complication.

Stocks do not grant a proportional vote in company policies and operations. The initial stockholders as of 1110/133 are considered to be the command team. Each command team member gets an equal vote. The command team may appoint others to the team as it sees fit.

The designated captain of the ship does not have special powers in the command team or in the company, but does exercise special powers and command authority when operating the ship. Only command team members may hold the office of captain.

Any stockholder may buy shares at any time based on the computed value per share at the time of purchase.

Non-stockholders may buy shares only with the approval of greater than 50.0% of the command team. They then become stockholders with similar priveleges, but as implied above, this does not automatically put them on the command team.

Stockholders may cash in shares only with approval of greater than 50.0% of the command team. Shares will be cashed in at the computed value per share at the time of sale, rounded down to the nearest credit. (i.e. A cash in of 450 shares at Cr 1.4567/share will give the seller Cr 655.00, not 655.515)

Stockholders must pass all stock transactions through the company, not directly with each other. A stockholder selling to another person is simply treated as a cash-out followed by a sale. In this case, the command team approval of one is contingent upon the other and vice-versa, i.e. it's one approval decision. This just simplifies bookkeeping.
_________________________________________________________________________
Amended 1110/135; Command team appointment.
Last edited by forbin on Thu Jan 16, 2014 6:39 pm, edited 4 times in total.
John B. | Elliott von Rossveldt, ship's CCS officer. | 2 5 9 B F B | 8 7 9 B F B

forbin
Posts: 521
Joined: Sun Dec 01, 2013 6:16 pm
Contact:

Simple Accounting Procedure [1110/133]

Post by forbin » Sun Jan 12, 2014 4:08 pm

The company's accounts are maintained as follows:
  1. [Deleted: Note value of ship's general fund at the beginning of this "cycle".]
    Note "high water mark" value of the ship's fund -- the highest balance achieved since the fund started or since the most recent large payment towards the ship's mortgage.
  2. Make purchases and pay salaries and/or wages from the general fund.
    1. This includes fuel, maintenance, speculative cargo purchases, i.e. any and all outlays.
    2. If insufficient funds are available for crew payments, pay in "ship's scrip".
    3. Ship's scrip outlays are tracked in the ship's computer but if anyone wants, we can print our own scrip.
    4. Personnel [ooc: this means both players and NPCs] should also keep track of any scrip they're paid.
  3. When revenues are made, offer to cash in any outstanding scrip 1:1 for credits.
  4. Next pay into general fund until value reaches the high water mark. [delete: is same as it was last.] If insufficient revenue, pay what's available, and note the deficit as "loss".
  5. Label any revenue left over as "Profits".
  6. Pay 50% of profits into general fund, increasing its value. Recompute the value per share of stock.
  7. Of the remaining 50%, convene the command team. Determine allocations of remaining amount to the following categories:
    1. Flat bonus amounts and/or special payments
    2. Additional payment into the general fund
    3. Dividends
Dividends are divided among current stockholders according to the percentages of the shares of outstanding stock each holds. Dividends are paid in credits with fractions rounded to the nearest credit. Any breakage is kept in the general fund. If stockholders want additional shares instead of cash, simply take the credits paid and compute a stock purchase. Value per share must be recomputed before every purchase. If multiple holders want stock instead of cash, they must all say so "up front". The conversion of cash to shares then occurs as if it were a single transaction at the current stock value. If you miss this distribution, you are assumed to have received credits and the sale is computed based on the new stock value. Players may accept dividends in ship's scrip instead of credits but this is not recommended, as it complicates things. [It is recommended they have a justifiable reason for doing so.]

_____________________________________________________________________________________________
Amended 1110/135; Clarification that the target value is the High Water Mark before claiming profits.
Last edited by forbin on Fri Jan 17, 2014 2:20 pm, edited 1 time in total.
John B. | Elliott von Rossveldt, ship's CCS officer. | 2 5 9 B F B | 8 7 9 B F B

forbin
Posts: 521
Joined: Sun Dec 01, 2013 6:16 pm
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1110/135 - Command Team

Post by forbin » Thu Jan 16, 2014 6:28 pm

Amendment to Stock and Shares entry of 1110/133.

1. By unanimous approval of the initial command team, Ship's Gunnery Officer Greg Pike is hereby appointed to the command team.

The Command Team now consists of:
Eanarii "Fusil" Aaraskaham
Geris Dahl
Litnam gar Gimkis
Elliott von Rossveldt
Greg Pike

2. At the recommendation of Fusil, the command team shall henceforth be limited to five stockholders in the ship's company, barring circumstances that require otherwise. As usual, this policy is subject to review, alteration, or repeal by a majority vote of the team exceeding 50%.
John B. | Elliott von Rossveldt, ship's CCS officer. | 2 5 9 B F B | 8 7 9 B F B

forbin
Posts: 521
Joined: Sun Dec 01, 2013 6:16 pm
Contact:

1110/135 - Simple Accounting Procedure

Post by forbin » Fri Jan 17, 2014 2:12 pm

Amendment to Simple Accounting Procedure of 1110/133

Amend the Simple Accounting Procedure to state that instead of noting the last value of the ship's general fund, one notes the "high water mark". This is the highest value of the fund since it started or since the most recent ship's mortgage payment.

Some of these "cycles" will entail payments and no revenue. This amendment simply clarifies that we are not tracking weekly, monthly, or per-cycle profit/loss. Instead we don't claim profits until we have reached the last high water mark. This keeps the value of the fund increasing consistently and prevents us from fooling ourselves if we get a little revenue in between bouts of spending.

[Commentary: The high water mark does need to be reset after making the large annual ship's mortgage payment. Otherwise, we won't actually end up paying any salaries or dividends until a whole year afterwards unless we hit a windfall.]
John B. | Elliott von Rossveldt, ship's CCS officer. | 2 5 9 B F B | 8 7 9 B F B

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