The below is for consultation on in regards to the Al-Ansaar Association
OUR Democracy
The Al-Ansaar Association fervently believes that the Democracy of small people is embattled, constantly in danger from the undue influence of big money, and is therefore in need of protection.
And that this protection is best afforded through the support of small businesses.
That small bussinesses are the cornerstone of our Democracy, and indeed lifeblood of Our Communities.
THE ACADEMY OF EXCELLENCE
Towards these ends, The (Al-) Ansaar Association believes that to learn business, it is enough to do business.
The Al-Ansaar Association will set up a fund open to everyone, and not just to Muslims, to build experience in and to promote and support small and new businesses.
The Al-Ansaar Association will
1- act as a facilitator for the work of management oversight teams of Muslim financiers/ accountants/ solicitors/ consultants to provide their time and expertise on a pro-bono basis to successful candidates/ applicants.
Each successful candidate/ applicant will have one point of refernce mentor from this team, and if available then one mentor from The Academy of Excellence Alumni (See below).
However, they will also be provided access to the expertise of the whole Management Oversight Team.
Candidates will present their proposals for consideration to the (Al-) Ansaar Association who will consider convening an intervew and methods session with a pre-formed pro-bono management oversight team for that purpose and with one Trustee from the Al-Ansaar Association also being present. That Trustee's decision to fund or not to fund will be on the advice of the convened pro-bono Management oversight team.
2- carry 100% of type B Shares of no value in any Company formed, split equally between existing Trustees of The IAl-) Ansaar Association, by the suucessful applicant, in order to explicity prevent the sale of the Company via buyout to any National or Multi-National or other Company directly employing over 50 people.
3- approve Bookkeeping services to the formed Company. With a service providers giving assurances to complete and ongoing oversight of the accounts to the Al- Ansaar Association, on a daily and whenever needed basis, and appointed Management Oversight Team.
4- Initial loans made by the Al-Ansaar Association will not attract any interest repayments, and will need to be underwritten with personal assurances from the successful applicant with a stipulated deadline for repayment.
5- If the formed Company is in need of recapitalisation for further investment, then the Al-Ansaar Association will be afforded first refusal.
We will seek to provide further investment Capital in exchange for part ownership of the Company at a pro-rata market value; So for example if the Company is valued at 100k, and requires a 25k capital investment then this will be afforded at 20% ownership of the Company in shares.
If the applicant refuses, or cannot gain, recapilisation via the above means irrespective or reason and seeks recapitisation elsewhere then they will not avail themselves of variable interest loans, only being allowed to accept fixed repayment loans over a limited period of time.
If recapitalisation can only progress as sale of part ownership of the company, then following negotiations with a third party, the Al-Ansaar Association will be given first refusal to meet the negotiated settlement before progression can occur.
6- The formed Company will neither accept nor provide finance based upon usury or interest based models which seek not to mitigate risk but to fully eliminate it.
This ethos is in line with the Islamic vision that risks should be accepted and mitigated but not fully eliminated.
That taking risks is the fire blood of innovation and best Muslim practice.
7- Type B Shares, of no value, will also allow for the Al-Ansaar Association to liquidate the Company in case any of the 6 points above fail, and this will be by majority vote of trustees following a meeting called to address their concerns.
In case of liquidation of assets, after liabilities have been satisfied including to the (Al-) Ansaar Association, the (Al-) Ansaar Association will gain half of the value of the remaining assets with the applicant taking the remaining.
8- The Proposer/ Successful Applicant is free to form other businesses, become part owner in other bussinesses, work in or for other businesses, sell on his/her busniess share to another small business owner, or new applicant, only after a specified evaluantion time has elapsed, or after agreement to liquidation,. whichever is the sooner.
9- The so formed Company will carry the (Al-) Ansaar Association logo for THE ACADEMY OF EXCELLENCE on its letterhead and in all email and other communications in a prominent position with pride.
ACADEMY OF EXCELLENCE ALLUMNI
Former and Existing Applicants will be asked to maintain thier contact with the work of the (Al-) Ansaar Association through providing support for new and potential applicants through once yearly conferences and conventions.
And also when asked by providing a mentoring service for successful applicants.
OUR HOPE
It is hoped that the (Al-) Ansaar Association fund will be used to great effect to launch the careers of many successful businessmen and businesswomen, who will champion Democracy through the support of Small Business Enterprises and the (Al-) Ansaar Association.
The name of the fund will be "The Academy of Excellence Fund". Please donate generously to this not for profit fund.
2 comments:
Point 7, should be amended that any asset value remaining after all creditors have been satisfied will belong fully to the initial proposer.
This to provide an incentive to the proposer to make his/ her endeavour a success.
Application for recapitalisation will follow these ground rules.
A meeting called by trustees to evaluate business will have regard to
1- resale value of the whole company based upon an actual whole sale, which will be considered as one viable option as per liquidation rule. This value will be used as the value of the company.
2- recommendation of the oversight board of managers as to potential added value of the business by recapitalision with a time frame of 7 years hence. The oversight board will recommend low, medium and high values and provide scenarios which will be the determining factor of each.
The decision whether or not to recapitalise with Academy of Excellence funds will be based upon the above 2 and an interview with the candidate in regard to how he/she will mitigate the risks highlighted as in point 2.
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