If anything, any organisation should be there to maximise value for all people involved, whether they are its clients, co-workers, shareholders or the society at large.
Unfortunately, our current legal framework is not equipped to achieve this. It’s hard to grow a new venture or redistribute profits of a business more equitably and flexibly. This is where the Slingshot can help.
In a start-up phase, well-intended co-founders are too often stacked up against each other from day one; before the company has any true value, co-founders need to determine how they are going to split the ownership and the corresponding dividends. This often leads to long discussions and friction, which are definitely things a starting venture can do without.
Ventures often fail because, while venturing, co-founders shift priorities in life, or the business needs to take an unexpected turn, and there are things which cannot be managed with the previous ownership structure.
Once a venture is successful enough to reap its fruits, the generated profits are mainly distributed to the company shareholders, even though other stakeholders such as society, clients and co-workers could and should benefit.
Too often, the role of a company board is to ensure that shareholders maximise profits. A company board does not formally represent all stakeholders of the organisation, while an organisation would prosper – both financially and in true value – if it would do just that.
The Company Slingshot is a legal document that aims to solve these three discrepancies. It enables co-founders to split ownership more equitably and flexibly. At the same time, it empowers people to contribute to truly valuable initiatives and be rewarded in a way other than just ownership of the company.
The Company Slingshot also offers direction in a more holistic, value-driven distribution of profits to all stakeholders involved. It also supports existing organisations in upgrading existing company structures to align with stakeholder interests more beneficially.
Whether you are contemplating starting a venture or you are already well on your way, the Company Slingshot ensures that you can rebalance intrinsic value with financial value.
We’re here to help: Happonomy can deploy a Federation of legal and organisational specialists who can guide you with the implementation of this model both on a management and legal level.