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The Corporate Structure inside the community developments will be decidedly different than the current, for-profit corporate structurei, though efforts will still be made to maintain a positive flow of proceeds from the corporate entities. Effectively, the only real difference is that the lobbying and political power of the corporations will remain balanced by an enforceable voice of the people, who have taken their place, through representatives, as vested shareholders of the corporate entities through the foundation ownership.

 

The most notable differences are looked at here in order to provide the reader with a better understanding of how the sociological relationship between the citizens and the corporate entities will function within the community developments. It is furthermore, imperative that a sufficient level of incentive be maintained to encourage the more entrepreneurial minded individuals to continue to seek to start new business interests and even full corporations, develop new technologies and have the financial incentive to contribute these ideas to society for their own personal gain in addition to being for the benefit of the society as well.

 

Corporate entities that will be built and/or brought into the community developments, will be owned, generally either through a Joint Venture or a Joint Forces Agreement and/or established as a Tertiary Corporation under the ownership of the Foundation and/or the Parent Incorporation established as part of the Community Development. This will ensure the place of the people as shareholders, and the needs of the community (the people) to have the corporate entity succeed in business if for no other reason than their own personal benefit … as befitting any shareholder or group of shareholders. The owner of the IP or technologies and/or the individual(s) as have been selected to run the said corporate entities necessary for the benefit and growth of the Community Developmentii will retain a large portion of the proceeds of the corporate entity. This should provide the individuals who are more creative, to actively pursue inventions and innovations that would put them into a position wherein they would be able to get their own corporate entity fully funded and made operational.

 

A negotiated percentage of the net positive return from the corporation will go directly to the individual(s) running the corporation and/or the owners of the IP and/or technologies of the corporate entity. A separate percentage of the net positive return will go to the private hedge fund where it will be strategically invested in order to be utilized by the associative philanthropic foundation for social assistance programs. The actual amount shall vary dependent upon the negotiations as have taken place for the funding of the corporate entity. A total of not less than seventy percent of the net proceeds from the corporation is currently estimated to be made available for investment into the account(s) with the private hedge fund(s) through a series of holding companies, investment firms, trusts and other fundsiii in addition to the philanthropic foundation which will allot the money for social infrastructure and benefits.

 

It is approximated at the time of this writing, that Corporate “donations” to the Community Development should be roughly equivalent to the cost of expenses of the Corporation itself insofar as this is possibleiv. However, not all of these “donations” will be utilized for the purposes of a reduction in tax liabilities. Taxes will be paid in full accordance with Generally Accepted Accounting Practices or GAAP, and the tax liabilities should be reduced, but efforts need not be made to reduce the tax liability to a full zero percent, even if it is possible. “Donations” from the varied corporate entities will likely be comprised of many “In-Kind” donations, including the provision of classroom space, experts in their respective fields, and even laboratory space and “real-world” experiments for the students who may be studying at that corporate location. The ability to create the fully Isolated Economic and Financial Systems have not been finalized at this point in timev. Any and all such monies as are retrieved from the private investment funds are under strict limitations with a minimal amount of seventy percent to be paid directly into humanitarian projects excluding administrative fees and/or overhead costs. This program will be more fully established by and between the Private Hedge Fund group and the Philanthropic organization established specifically for these purposes. It is imperative to note and remember however, that this is a long-term solution and likely will not be implemented in a single lifetime, but must be configured over the course of subsequent generations. This is merely all the more reason that the original documents of the founders, must spell out explicitly, not only the rights of the corporate interests, the governing bodies and the people, but also the restrictions placed upon them in order to preserve an equal voice among the three groups and to ensure, to any degree possible, the ability of any singular group to usurp undue power and influence, even if the general apathy is such that those solutions may seem to be an attractive and less-imposing alternative at any foreseeable time in the future.

 

System Breakdown & Schematic

  • The Foundation funds and builds a corporate entity based on the ability of the planned corporate entity to generate positive proceeds through the standard course of business

 

  • The corporate entity generates positive proceeds in the same way it does under the current economic system

 

  • Corporate Executives and/or any other owners (such as the technology or IP owner or innovator that was the driving force behind the formation of the corporate entity) retain the negotiated percentage of the net proceeds for their personal gain

 

  • A percentage of the net proceeds is set aside in the corporate accounts for the ongoing operations, in addition to part of a bonus level plan for the administrative staff, executive corps and the mid-level managers and the actual workforce

 

  • Proceeds that would normally be paid out in the form of dividends are diverted to a private hedge fund to be utilized in a strategic investment plan, not only to increase the amount of available funding, but also in order to fund the infrastructure, the daily operations and maintenance and the social services as are provided to the people within the community development who are members of the voluntary association with the foundation

 

  • A philanthropic funding organization shall be established, again, under indirect ownership of the parent foundation. This philanthropic group or organization will work directly with the governing body to ensure that the proposed and approved budgets are in order, and sufficient to meet the needs of the people of the voluntary association. Furthermore, it will work with the relevant utilities and other providers of infrastructure in order to plan and budget the requisite funding to provide for all of the social services including health and medical care and treatment, education, continued feeding programs, social activities, conservation programs, research and development projects and any and all other such items as have been approved per the authorized budgetsvi.

 

  • Funds from the Philanthropic Organization will be distributed as agreed upon in the budget and as made available via the private hedge fund in accordance with the agreements of the budgeting agency. Such funds as are not utilized, (there will be incentive programs put in place for even those agencies of the governing bodies to work under budget) will be reinvested in such areas as are deemed to be beneficial, necessary and/or prudent for the Community Development. Among these areas will be research and development and other critical areas of social growth and development, and even for the continued growth and expansion of the parent incorporated body and the foundation

 

It is furthermore, necessary to ensure that any and all investments are at least “twice removed” from the investment trade platform before they can be returned for further trades. Thus, it will be necessary to develop a cyclic economic theory and principal based on the limitations of the trades and the private funds and their utilization within the community development. Such details will however, ultimately be dependent upon the establishment of an internally owned and operated private hedge fund and/or the utilization of private banking interests as have already been approached and tentatively and conditionally approved.

 

Furthermore, all of this must be incorporated under the foundation so that any and all funds can be distributed among the general population without violating existing domestic or international laws as set forth and established by the global economic powers. The funds, like most hedge funds, will be private and subject to invitation only, which will be part of citizenship within the actual Community Development. Each citizen, by nature of their citizenry … or more accurately, by their voluntary association as part of the community, will be offered the opportunity to become a member of each and every such fund as is utilized for the purposes of the Community Development as a wholevii. As such, they will enjoy the direct benefits of investments within the community and also be eligible to receive a portion of the positive net return from the investments and the earnings from the corporate entities as well, based on such standards as shall be established and adjusted as necessary. All membership must be in the form of a voluntary association in order to be in full compliance with any and all international and domestic financial and contract laws, so membership will not be mandatory, though will be required for social benefits. In addition to the myriad social assistance programs, each and every citizen will be eligible for what is essentially a cash stipend large enough to at least provide for basic necessities that are not covered by the social assistance programs, in addition to given ample opportunities to increase their ability to earn and their personal earnings.

 

For those persons who do not wish to be part of a voluntary association, paid options for all of the services will still be available, allowing them to remain as residents, even if not full citizens, within the community developmentsviii. Insurance, metered utilities and other “norms and standards” of modern society will be readily present and actively utilized within the community developments, so such a disassociation may prevent people from enjoying benefits, but should not preclude them from living within the societal construct.

 

In fact, in regards to insurance, it has been deemed that a one to two percent co-pay on the part of the recipient is both beneficial and necessary in order to prevent the utilization of the emergency rooms and other treatment centers with utter disregard. Again, the perception of value is psychologically and socially every bit as important as the actual, more “tangible” or “real” value of goods and/or services. As such, all of the requisite technology would be readily in place for people who did not wish to be voluntary members of the association.

 

The same is true in regards to public utilities. All such utilities will continue to be operated and measured in much the same way as they are now, perhaps with an exception for internet services, though all owned and operated by the foundation. As such, people who were not voluntary members of the association would have the same established setup for utilities, already metered and recorded, and billing would simply take place with the bill being sent directly to the consumer rather than being bundled and packaged through the philanthropic organization normally tasked with the payment of such bills. All of the same applicable rates would apply to the individual as to the foundation.

 

Education falls neatly into the same category as well, though there should be some exceptions here. In short, when all of the organized administrative redundancies and the more superfluous positions are relegated to a position of insignificance, the actual cost of education is rather limited, even if the inclusion of all of the requisite educational materials such as books, papers, and even laptops are all factored in. While it will not be possible to provide free education to each and every person around the world … at least not in the opening phases of operations, and probably not for a generation or three into the future, it is strongly believed that free education should be provided to all of local population, regardless of their position in regards to voluntary association.

 

Like the hospitals and other similar facilities, the budgetary requirements of the “schools” (such as they are) can easily be factored to include budgeting for operations at full capacity. This is true for education at all levels, from pre-kindergarten through to post graduate and doctoral (and even post-doctoral) programs. In fact, it could almost be said that literally everyone needs a viable lesson in critical thinking skills and complex problem solving skills.

 

Some of the other general services may also be available to those that elect not to voluntarily associate with the foundation. These will likely include public transportation which should be made freely available to everyone, even on a more limited schedule during off hours. Feeding programs at most of the corporate entities will likely be part of the regular employment package, so may be enjoyed at work, though allowances may not be made to credit individual accounts with normal social benefits for the purchase of goods and services in local stores and restaurants. While it is not fully understood why not everyone would willingly and voluntarily associate with such a group, it is well understood that there will be those that do not wish to, no matter the incentives, and every allowance needs to be made to respect those decisions as well.

 

If there is any confusion regarding the payment by non-members, it can easily be rectified. Payment will have to be structured so that it is paid into a general fund of the public utilities, under the direct and sole control of the foundation, and slated only for inclusion into the strategic investment accounts for the Private Hedge for utilization in further philanthropic efforts. If forced into a payment directly to the foundation, it could be legally misconstrued as being a donation and would not be viable. The same holds true with payments made to anyone other than directly to the service provider. However, it is imperative that any and all such funds collected, ultimately be fed back in to the Private Hedge Fund Account(s) and thus, entered back into circulation within the community development.

 

It should also be noted that these corporate entities will still be focused on maintaining a positive cash flow to drive growth within the Community Developmentix. They will not, even so, be restricted by current for-profit models. These corporate entities will additionally be utilized as technical, vocational and educational training centers, providing for the training of those whose aptitude batteries indicate a strong ability to succeed in such industry and whose personal choices have reflected a desire to learn such a tradex.

 

The educational system in place will be a variant of that as was established by Rudolf Steiner and as has proven to be very effective to the degree that it has been introduced in modern society, though this variation will have a much more focused emphasis on scholastic studies as well, at the very least to the extent that they are necessary for the selected trades and/or fields of study. Rather than working, trapped as it were, in a single classroom with students of varying interests and desires, students will study in “real-world” environments with part of the day for scholastic studies and part of the day for matters of interest and importance to their studies within their selected fields.

 

 

i The Corporate Structure will not be established on a traditional “For Profit” model. Most of the corporate entities will be established in a joint venture or partnership with the Foundation that owns/runs/governs the Community Development. The individual or group that started the business will receive a percentage of the business, the foundation/governing body will receive a percentage and the rest will be returned to the community as Social Assistance in one form or another. In such a way, not only do the corporate entities provide a direct and tangible benefit to the community and to the individual, but they can further serve the people as well. The corporate entities will also be utilized for the purposes of vocational and technical training and education providing real-world environments and real-world experience to the students.

ii These decisions will be made in negotiations with all of the relevant parties to be undertaken on a wholly case-by-case basis, with the best interests of the individual and the community in mind. If the individual will be receiving funding from other locations, such negotiations will not take place, but if the foundation will be funding the corporate entity, it shall retain its rights as primary shareholders and as an active member of the Board of Directors.

 

iii These figures are all tentative and based on the best available data and conservative estimates based on the ability of the trade platforms and the needs of the individual communities to the extent that they have been planned. They are subject to change based on the results of further research and testing within real-world environments. If and when such adjustments are made, whether or not they will be retroactive and/or implemented in previously established corporate entities will be decided on a case-by-case basis given the best available data at the time. Such is the nature of an adaptive system however, that it is established specifically with change in mind.

Conversely, the individual citizen and/or resident receiving such benefits shall not be subject to any penalties for losses as may be incurred in the process of the trade programs. The trade process is such that this should not be a concern as the primary utilization for trade shall be primarily in the form of asset-backed securities, though the actual trade process is considered a trade secret and will not be revealed in detail here.

iv A corporation writing off one hundred percent of its proceeds may work when they have the political lobbying power of someone like General Electric or Google, but it is not seen as being a viable means of conducting business, most notably in the early phases of operations. While such data should be made publicly available, through the websites, quarterly reports and other similar documentation and reports, it would likely draw undue scrutiny and pressure on the parent incorporation as local and domestic governments demanded their “fair share” of the corporate proceeds. However, marketing should reflect all of the contributions of the corporate entities, in-kind and otherwise, so that the people can see for themselves, that not only are the corporations paying taxes, but working directly to provide a direct and tangible benefit to the people.

 

v Current negotiations are underway with industry professionals who have established just such an isolated and separate economic and financial system for use throughout Africa and for utilization by, for and on behalf of the indigenous and aboriginal tribes. The system and means to implement it have already been put in place, and there is preliminary approval from all parties, but the costs of implementation will force this to be a long-term solution, and not viable as an immediate solution.

 

vi A separate agency within the foundation will have to be created, with participating membership from the Foundation, the Governing Body, the Private Hedge Fund, the People (through representatives of the Ombudsman Program and Citizen Review Board) and representatives of those in charge of the social services. Jointly, the people of this agency will determine the viability of the budget and the extent to which growth within the community development can be maintained.

 

vii The legal experts have not yet determined the full set of ramifications based on the dividends as shall be paid to the individual citizens and/or the terminology that is allowable. The term “dividends” as used here is used only to denote a recognizable format for the average reader.

viii The concept of “voluntary association” is, in this sense, a very real and necessary legal area of concern in regards to the current “legal” system in place in much of the world, and primarily in regards to the operations, benefits and legal restrictions imposed on faith-based organizations. Voluntary association will NEVER however, be required, save for those who wish to avail of the varied and sundry social benefits associated with the voluntary association within the faith based organization. The legal issues are so intense and convoluted that they could fill large numbers of books all their own.

 

ix It is imperative that the corporate entities are economically sustainable but not to the point where the customer or employee needs to be taken advantage of for the benefit of the shareholders. The shareholders will actually be the community itself and ultimately, the citizens and residents therein. The ideal corporate model is one that provides a sufficient return for the innovator of the technology, product and/or service of the corporation, a livable wage to the employees and provides at least some financial return to the community itself. These funds can then be invested in the trade platform and utilized for the purposes of social assistance programs, public utilities and other direct and tangible benefits to the people directly, including the payment of “dividends” to residents and citizens.

x Initial training will neither cost the student any fees or tuition, nor provide any direct payment to the student. However, at such a time as the student may accept an apprenticeship or similar such program, from that point forward, their training will be paid just as they would in any similar industry in standard practice today.

 

 

Return to the Table of Contents for Whole System Sustainable Development

 

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