Frequently Asked Questions - SHARES
Why so many types of
shares?
We
deliberated, discussed and debated the Share Structure for over a
year until we arrived at the final decision.
The reason we have
different types of shares is to allow both people with lots of money,
but little energy, as well as people with little money, but lots of
energy (as there are not too many people with both).
For those
wanting to contribute funds greater than the $100,000 membership then
investment shares are encouraged, these are non-voting.
What if I do not have
$100,000 (or even $10,000 for an introductory share)?
You
can pay a $20,000 deposit (or $2,000 for introductory share) and then
pay off the rest or work it off by Cooperative agreement.
Kanjini
Co-Op has a tiered Share
Structure
So you can actually join with a deposit of only $2,000.
If I can pay a deposit for a
Full Membership now, do I have to pay interest on the remaining share
capital?
Yes you will
need to pay interest on the outstanding share capital, because you
basically take out a loan from the Co-Op and enjoy the benefits of
the share immediately (once accepted). We typically charge the same
interest rate we pay on our loan from the bank, but for a limited
time we offer half of that interest rate (for the full term of your
loan form us)..
How about in-kind assistance
or working my share off instead of paying cash?
Yes
it may be possible for you to arrange part or even majority payment
for your share by working on Co-Op projects or providing other
in-kind assistance. This will be decided by the Co-Op on a case by
case basis.
Can I buy a joint share
together with my partner or family?
No,
Kanjini has chosen to have no joint shares for various reasons.
First
and foremost Kanjini Co-Op likes to treat each member as an equal
individual who has one vote.
Secondly joint shares would have to
first agree on how to vote and what is to happen if they cannot
agree? We like the one vote - one person concept.
Thirdly the
times of marriage until death are pretty much over (whether for
better or worse) and in today's world of serial monogamy
relationships change much more frequently. Joint shares would then
have to be separated into half shares and maybe later into quarter
shares or even smaller units. Joint shares would also mean joint
vote, joint liabilities and joint rights and clearly some boundary
would have to be set to this fragmentation. So we decided to not even
start with share fragmentation and ensured that one share is always
one share, it makes it simple too.
Last not least we did not want
to become part of any relationship split-up dramas.
Kanjini firmly
believes in the simplicity of one person = one share = one vote.
Does my life partner need to
also buy a share to live with me at Kanjini?
The
short answer is NO, your life partner does not have to buy a full
share to live with you on Kanjini land, but it will be cheaper in the
long run to do so. If you share your space with your partner both of
you will enjoy lower fees than a normal visitor, but as a member
he/she will not just get a vote, but also will enjoy much
lower fees.
Can my children inherit my
share?
Yes your
children not only can but will inherit your share (unless you write
them out of your will). However if you have more than 1 child the
share cannot be split into half shares (see above). You may want to
specify in your will which child shall get the share, or that the
share shall be sold and the proceeds divided, or that the share
capital shall be allocated as deposits for two or more
shares.
According to Kanjini Co-Op Rules
- 24 (2) Subject to section 167(1) of the Act the board must transfer
the deceased member’s share or interest in the cooperative to:
the personal representative of the deceased, that is, an executor or administrator of the estate of a deceased member; or
to such person the deceased personal representative may specify, in an application made to the cooperative within 3 months after the death of the member.
The person to whom the share is
transferred will not have any voting rights until (s)he is accepted
by the Co-Op as a member and has fulfilled her/his trial
period.(Rules 24 (3))
If the Cooperative chooses for some reason
to not accept the beneficiary of the estate as members, it will have
to buy back the deceased members shares (Rules 24 (1)).
Isn't $100,000 too expensive
if I do not even get my own house?
First
of all (similar to investing in the stock market) you will be a
shareholder in a multi-million dollar property and several profitable
businesses (paying dividends to you from their profits, which your
own house will not do). Additionally (and you cannot do this with
your shares in BHP) you can enter and enjoy the Kanjini property. And
last not least, you will also have first dibs on any private
accommodation becoming available on the land in return for a very low
maintenance contribution fee.
Take
for example a family of two adults and two children and assume that
the adults buy full shares to be eligible for the minimal maintenance
contribution charged, the children would not require any shares until
they turn 18. For that family to buy their own house and land
instead, they would have to easily spend double as much money.
Assuming they'd pay maintenance contribution for a 2BR pavilion with
en-suite on Kanjini, that would be quite similar to running costs for
their house, saving them a major capital expense.
And as an added
bonus, they will have the benefit of living in a caring community
with other kids on a great property :-)
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