What organizational changes are required to support multiple owners?

This thread is to discuss the ongoing project to bring the community on as part owners of Glimesh, make sure you check out the original thread before contributing to this conversation!


Are there any changes to our business that will be required? Is a C Corp the right organization type, or would another make more sense? How do our bylaws need to change?

Yes, there are required changes. You would need to become a Partnership or C Corporation. The downside to a C Corp is you have to provide stocks to each owner. You could literally start your stock at 1 million and grant each community owner an equal amount of stock making them no more an owner and no less an owner than the other. With a Partnership, each owner receives equal amounts of profit to the next community owner. This would be the best route as you avoid the need for stocks but with a Partnership, you have a risk of disagreements, divided profits, and potentially unlimited liability. In regard to your bylaws, they would just have to change in accordance with a Partnership or C Corp depending on which one you decide to go with.

I have been trying to do some research into this and get my head around the US business types as these are wildy different to how things operate in the UK.

I feel like a co-operative may be the best option for what Glimesh is looking for however. Co-operatives can work on a profit based model, the profits are designed to be kept between the community by reinvesting, donations, or via share of the profits paid out whatever terminology you want to use. However, from the reading I have done these don’t think to be taken up much in the US.

Some advantages to this are:

  • the money is kept within the community and within the control of the community
  • it relies on engagement from the shareholders/members
  • co-operatives by nature are almost impossible to buy control of

By very nature co-operatives aim to put the control in the hands of those supporting the company, which is why I have been looking at this. In some instances these co-operatives still have a core team which help keep things in check such as moderation etc.

However, I have not got a deep enough understanding of the US corporation system, but at its core co-operatives do fit the ethos of Glimesh and what it is I saw discussed at the meeting in terms of how it reflects that voice. That said, I have no idea how that would operate in practice, but I do think its at least worth the consideration.

Sources:

How co-ops are better than corporations - Co-operatives First.

What are Cooperatives? | Business Enterprise Institute | University of Alaska Anchorage.

That being said, I could be way off the mark here. I think perhaps chatting to someone who can explain american corps to me would help my understanding more. :slight_smile:

Hopefully this is a start of some food for thought though!

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