The following is the structure of the ownership and rights to claims.

In order of preference, RA has the following "Creditor Classes", creditors have no voting rights in the company but they have the first claim to all assets in case of company bankruptcy:

1. Product owners (ie: clients who own EDS, RAIIUS, VLTIC or other certificates, and ETF's) Have first claim.
2. Depositors (currently we have no depositors since we don't operate any atm's) Have 2nd claim.
3. Bond holders (currently we have no bonds issued) Have 3rd claim.
4. Direct loans (ie: CEO loan) Are the last creditor with right to claim.

Then we have shareholders, who have the full voting rights but rights to claim come first after all creditors claims are satisfied.

5a. Common stock holders (or public investors) Have full voting rights, and from insiders point of view are in many ways a "creditor". Due to the popular "i quit sl before selling my shares" trend we will hold once a year a mandatory refreshment of shareholders, that is; i will send an instant message, an email and a notecard to all shareholders, asking a simple question if they still want to continue to be shareholders of RA, this will happen in end of Q3, and any shareholder who does not respond before end of Q4 (giving everyone a fair 90 days to respond) or who responds with a simple NO will be bought back by companys account at the most current NAV per share.
5b. Insiders stock holders (that would be me, or anyone who could be a part of the internal side of the company, also including RA Treasury Account) this basically is same as 5a, but there's caveat worth adding; I will normally not participate in sharetrading at all, because first, im in conflict of interest with RA Treasury Account, therefore my own CEO account should only participate if there is a special offering (ie: a warrant, a SPO, where either price is fixed and/or i cannot take advantage of neither the market nor the treasury account). Secondly common stock holders shall be supplied any information regarding stock valuation, beforehand. Otherwise, insiders could take advantage of their uninformed partners and buy out their interests at a fraction of true worth. When it comes to repurchase of stock, RA will not repurchase it's shares unless i believe RA stock is selling well below intrinsic value, conservatively calculated. Nor will i attempt to talk the stock up or down. Instead i will give all shareholders -- and potential shareholders -- the same valuation-related information i would wish to have if our positions were reversed. (and obviosuly I will also not trade any other stock on my own account, all trades done by me shall be on behalf of RA so long as i manage RA)

This is the structure of claims and rights, for RA's creditors and stockholders. Finally is the question what if i for any reason cease to exist. Should that happen, the exchanges shall have the right to transfer any assets held by my account (which is Andy Grant account in case of all exchanges, and also in case of The Rock Insurance), and if the will of stockholders is to liquidate that shall then only happen in accordance with the above mentioned structure of rights to claim.

PS: This obviously is not a complete specification of rights, and clearification of conflicts of interest, so i will supply additional information as necessary in this thread, but for most part this should give the most essential information. Feel free to ask any questions here if some parts of this seem in any way unclear, or if for any reason you believe some parts of it could be done better.

Last edited by AndyGrant (2010-01-28 23:38:16)