The Four Lands - The Colony

[J. Alexander]

Accounting Problem

You have a proposed investor..but you cant really sell him a stake unless your willing to sell from your own persoanl shares or that of party members.....you set the cap at 1790 or so when you agreed to the Brightlaws deal.....you simply cant create more shares unless you call a board meeting...etc...and in effect they would consider that at this early stage as you welching on your agreement.....you could sell them from your personal shares and then reinvest in gold shares for yourself...

 

[Scotley]

Alvar

Clearly not interested in talking about the 'hounds' of matters of religion, Alvar changes the subject. "Since we still have a little money to invest, I have thought, though it is not pleasant dinner conversation. We will be transporting a large number of animals for several months. They will produce a considerable quantity of waste during our journey. Normal practice would be to toss it overboard. Given that we are going to be starting a major agricultural enterprise this would be wasteful in the extreme. Not only would the waste be excellent fertilizer, but it could be burned as fuel as well. Now given that our Captains and Colonists are going to be unhappy at having the boats fill up with dung, perhaps we could secure some sort of barges behind the ships to hold it? Either that or as the food is used up convert some ships over to waste haulers. That might be an easy way to enforce discipline during the voyage. A common punishment could be a period of days traveling and working on the dung boats? That should serve to keep the drunkards and brawlers in line." He shrugs, "Even if we decide to keep the waste we should also consider bringing some coal or charcoal for fuel. We will have forges and cook fires to feed. We will be using a lot of wood for construction and if you don't wish to strip even more forests for fuel then we should take some along. We seem to have the capacity and cash for it."

 

[Scotley]

Alvar

The conversation about being proactive suddenly sparks a thought, "Have we secured any siege engines for the voyage? I know some of the ships are armed, but I am referring to heavy weapons to defend us or if need be to attack existing fortifications? Such machines could be built there, but we would be better served by taking some along. Being able to put ballista and catapults in place soon after landing would be very helpful if we find ourselves engaged in battle in the early days of the colony. A handful of well placed and properly sighted-in Trebuchets would also allow us to control access to the river from the sea. We should also drill some of the colonists in the use of such weapons during the voyage."

 

[Nightbreeze]

Accounting Problem
[sblock]
You have a proposed investor..but you cant really sell him a stake unless your willing to sell from your own persoanl shares or that of party members.....you set the cap at 1790 or so when you agreed to the Brightlaws deal.....you simply cant create more shares unless you call a board meeting...etc...and in effect they would consider that at this early stage as you welching on your agreement.....you could sell them from your personal shares and then reinvest in gold shares for yourself...[/sblock]

[sblock=J.A]
Sorry, oh, mighty DM, but I think there has been a miscummunication between us. Here are the post regarding the last agreement with Brightlaw:

The Bank will insisit upon silver shares for their 20 percent stake. They may buy additional gold shares but they will not put up that much money without some voting control.

I tell the bank that the silver shares are normally not open, however I am very grateful to them for letting me start this company. Thus I will accept the 250.000sp, which currently would give them 16% of the voting power and a position among the senior investors (aka the real ruling council of the Company). If in future other silver shares are sold, their voting power (as well as mine and everyone else's) will diminish (but not by that much), unless we put up additional money to match the new entry and mantain the balance. I realize that this may not be 100% what they wanted, but it is the way the company will work - of course, very few silver share investors will be allowed. If they want to wait 6 months to see how I fare as a manager of the company, I assure them that their right to buy silver shares will not vanish. Even if they don't want to enter the silver share council now, I will gladly welcome an observer from them, in order to be supervised and evaluated.

They will raise their investment to 18 percent of all silver shares......you are given the impression that this is the offer you should accept

Do you mean that they want a fixed amount of the voting power? Or they will invest more than 250.000sp? Sadly, the former cannot be done (most of all, it would be too much of a burden for me to to all the calculations whenever I have to release more silver shares and see how much voting power each has). I am not bargaining for more money from them: this is just the way that this share system works: the more you invest in silver shares (if you are allowed to, and that is rare), the more voting power you have, but it is not fixed: it's just your proportion of silver shares.

I am trying to come up with a solution for them to have a fixed amount if voting power without having to invest more, but that simply is against the system, and besides even I, the founder, have not that privilege: my voting power has already dropped from 100% to 74% with the entrance with just another two senior investors.

Thus you are experiencing the dileminia of all great captains of industry....so after much debate and haggling you settle for the Bank owning 16 percent of the silver share....and with the addition of additional investors the voting power will be more spread out...as they will not invest any money into shares that will not give them some say on the council

I clearly said that I am unwilling to give them a fixed percent of the silver shares, and you seemed to accept the deal (or at least, I thought so when you said "with the addition of additional investors the voting power will be more spread out")

I am sorry to give you fits over this, but it is quite important. Shall we consider the deal with Brightlaw null?[/sblock]

 

[Nightbreeze]

Ederin listens the proposal of Alvar and his eyes widen This, sir, is the most creative idea that I have heard in a while. They may laugh at our smell, but any amount of funds you need, feel free to take it from the company's treasury.

 

[Scotley]

Alvar

"Very good, shall I look into the siege equipment as well?" He smiles, "If I'm going to add 'Dunglord' to my calling cards, I'd prefer to add 'Chief Engineer' as well."

 

[Nightbreeze]

Sounds good to me Ederin cracks with a sudden laughter.

I have to say that the vision of small fleet crossing the ocean and disembarking with a flottilla of dungboats will get us some strange looks, both from the other people of the Four Lands and from the natives. After another chuckle, he adds "But hey, I have always valued creativity more than seriousness"

 

[J. Alexander]

nightbreeze
Comprimise
[sblock]Yeah it got all confusing, the problem i think is that you did not set a intial captialization of the company and sell shares up to that point and kept adding investors...The Bank's intent was to have 16 percent of all the shares at the sail date of the colony. So unless the company is willing to do this, the Bank will pull out. From their standpoing they had 16 percent then within hours etc you start reducing their overall position on something they felt they had given you excellent terms and taken the leap of faith by extending the credit in the first place. Their solution is this...come up with a max number of shares you are willing to issue on the start date then agree to limit all other share issues for one year or allow them the right of first refusla on 16 percent of all new shares issued. Sorry to go back but it all got confusing as it was intended to do ..let me know your thoughs[/sblock]

 

[Nightbreeze]

[sblock=J.A]
Yeah, I realize that after a while it gets mad and that they have treated me very well, but so I am trying to meet them. It seems to me that they are going to agree if I give them the right of first pick on the 16% of any new silver shares issued, with the condition that if they refuse, the new issue is reduced by 16%? (this is simpler than it seems: for example, if pandak wants 100s.shares, I make an issue of 100+x (so that x is 16% of 100+x). If they want it, they take x shares and pandak takes 100, and their precentage is the same. If they don't want it, the new issue gets down to 100, all of them to pandak).

Furthermore, I promise that no one other than the current holders of silver shares will be permitted to be issued or to buy silver shares for one year. Given the fact that the current silver share holders (SSH) are probably going to ask for a small quantity of shares in this year, they will be able to defend their voting stake with little or no investment. Also, as the silver shares cannot be traded to people out of the SSH, they already know the other decision makers for the next year.

Is that ok for them? (but, before that, what kind of interest are they applying to my loan? 5%?. They have some power over me, because of the money I owe them, but they probably realize that the Duke of Sunbridge may cover my back if they try
something funny, and they still control only 16% of the voting shares...)

Do you want me to go on and estabilish the precise rules for director's assembly, executive structure and so on? As for now, I have only thought of a SSH Assemebly. As the company still hasn't started operating and we don't know how bright the future is, for the moment I'd just stay with me as a CEO that takes the decisions, unless the SSH challenges me formaly. As soon as the matters become more complex, we shall set up the complex guidelines. If you think that I shall set them up now, however, I'll do that[/sblock]

 

[J. Alexander]

Nightbreeze
Agreed give me the revised figures..and let me see the sums involved..they may require some adjustment....and the rate is 8 percent

let me think on the rest