K-Business
Code of Operation

 Revised: August 12th, 2005



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The Bobby Fuller Four are Singing
"I found the Law and the law won."

 

A. Introduction

The purpose of creating these relegations is to insure that K-Business companies operate in a manner this is efficient, open, and fair. Fairness in this context means treating all participants in the K-Business experience, i.e., workers, officers, stockholders, and sponsors in a way that respects their rights and their stakes in the company. The deadlines and expectations below conform to the accounting, business, and moral standards of most American businesses tailored to the very short corporate life of a K-Business company.

To finish the year as a K-Business Company, a company must meet all of the following deadlines:


B. Initial Goals

By October 2nd, A K-Business Company must

(1) Issue at least 30 shares of IPO stock with a prospectus for each shareholder such that.
(a) each prospectus includes the CS and CEO's email address;
(b) each company member owns at least one share of stock;
(c) at least 1/3 of the IPO shares sell to non-company members.
(2) Assemble and turn submit to the sponsor on disk:
(a) a list of all IPO stockholders including email addresses;
(b) a list of all members including email addresses along with their parent permission slips.
(3) Provide its sponsor the equivalent of KD50 either through either
(a) cash;
(b) the equivalent of KD50 in shares of company stock according to IPO value.
(4) Open a bank account with the Business Office.
(5) Elect and submit to the sponsor a list of company officers.
(6) Vote upon a monthly salary scheme and get sponsor's approval.


C. Midpoint Evaluation

By December 3rd, A K-Business Company must

 (1) Have the company sponsor approve the company's books.
(2) Hold at least ONE open stockholders' meeting at which any stockholder can attend and nofity all current stockholdersof this meeting.
(3) Pay the November-December payroll.
(4) Write and submit a mid-term report including, at least, reports from the CFO, CEO, VpoM, VpoS, and VpoS; the current book value of the stock; and
(a) mail a copy of this report to all stockholders;
(b) submit a copy to the sponsor for posting at the K-Business website.



D. Liquidation

By May 7th, A K-Business company must
(1) Pay its sponsor the remaining KD50 sponsor's fee in cash.
(2) Hold at least ONE additional open stockholders' meeting to which all stockholders receive an invitation.
(3) Pay its April payroll.
(4) Submit copies of all company records to the sponsor for approval.
(5) Close out its Business office bank account.
(6) Write and submit a final report including, at least, reports from the CFO, CEO, VpoM, VpoS, and VpoS; a statement of profit and loss; and
(a) mail a copy of this report to all stockholders;
(b) submit a copy to the sponsor for posting at the K-Business website.
(7) Pay 5% of profits (if any) to the House of Zakat or another sponsor-approved charity.
(8) Distribute any remaining money to stockholders.
(9) Submit to the sponsor a list of remaining company members, officers, and those eligible for any company awards.




E. Profitable, Unprofitable, and Bankrupt Companies

(1) A profitable company is one that conforms to ALL of the obligations above and pays its shareholders at LEAST at 1% dividend.

(2) A non-profitable or loss-making company conforms to ALL of the obligations above but returns less per share to its stockholders than the IPO value of its shares, so long as it returns at least 1% of the IPO value.

(3) A bankrupt company returns 0% of its IPO value and cannot totally pay all of its debts or does not conform to the obligations above.



F. Receivership and Bankruptcy Procedures

Should a company fail to meet any of the deadlines above, this company will be put "in receivership" whether in October, December, or May with the company sponsor acting as executor of its subsequent bankruptcy. Its bankruptcy liquidation will be conducted in concordance with common bankruptcy procedures whereby:

(1) All assets are liquidated and the money distributed to pay off outstanding debts first, including those owed to employees (payroll debts) and sponsors.
(a) If a company cannot meet all of its debts, each debtholder will be paid a percentage of what is owed based on the company's ability to pay and the debt's size.
(2) Any remaining money will divided among stockholders.
If there is any dispute as to whether a Company is in "receivership," the program director will make the final decision.

The program director reserves the write to waive or alter the deadlines outlined above so long as this does not result in more strict requirements.



G. Statement of Understanding

I, acting as an executive company officer, agree to meet the conditions and deadlines outlined above. I futher understand the receivership procedures that will follow should my company fail to meet these deadlines and obligations.

In the event that I no longer hold the position of company officer, I and my company understand that the same obligations fall upon my sucessor as the obligation is assumed by the company and that this agreement is between the company, its sponsors, and the program director with myself only acting as its agent.

 

Company name: _________________ Date: __________________________

CEO's signature: ____________________

CFO's signature: _________________ VPoHR signature: ____________________

VPoS's signature: _________________ VPoM signature: _____________________

CS's signature: ___________________

Sponsor's signature: ________________

Program Director's signature: __________