Problem with members of CC

[anakin]

The artistic assets like they can use in filmmakers' guide book, newspaper or online production articles, the advertising usually request for company's reel, advertising in film magazine, portfolio on our website. Press release and showreel with big Graca ads on still have to go public.

Yes, Dave - you are right that I'm worried about the reputation and exposure the company will get from the work done if I agree.

If the members say they will "just" refrain from using any job done during our period with immediate effect, but that's impossible because the projects are deeply attached with the company's name.

[Dave A]

It is hard to tell what the current value is

Is there any likelihood of a royalty income?
Is there a value in ownership?
Somehow you need to agree a value on this.

On the name brand - be careful you're not making an emotional decision on this. I for one know about the emotional attachment that goes with something you've created. This has got to be really tough for any artist. Step back, see the product as a commodity to be traded and walk away.

Your real asset is within you.

[Chatmaster]

Anakin, lets say I am interested in buying your share in the CC today, how much will it cost me?

[Yvonne]

Anakin,
Congratulations!! On your children's book.

Quote:

You mentioned earlier that a substantial investment was made in advertising and marketing, that value continues to support them, so asking for your 25% seem more than fair.
Not sure what you meant this - does that mean I'm too demanding? They won't be able to use advertising again, but the DVD's, pamphlets, information, etc. are already distributed.

Just to clarify, I see the advertising investment as an intangible value for the future in other words an asset, you are not being too demanding.

The tone of the reply from your partner gives the impression that they believe they have the advantage, not even being prepared to value the business and share the cost of the valuation thereof shows in my opinion, that they do not seek a win/win situation, and are willing to risk an outright dispute.
Definitely sounds as if you are being maneuvered out of the business.

You need some professional advice and assistance, and only you can know how much value you place on investing in a dispute with them, which ultimately could lead to the loss of the amount they are prepared to pay you out, and in the end the only value out of the dispute you may receive, will be to prevent them continuing the business.

Is it worth R24,000 to you to stop them!

As to whether the valuation cost would be worth it, if the partners refuse to pay, they will just as easily refuse to "accept" the professional valuation, the value is not what any person claims it to be, but as in the last post, what someone would "Ask" and what someone would "pay".

You have a massive headache here, and I can only imagine how disappointed you are with the way things have turned out.
Ultimately with three partners trying to maneuver one to give up their shares,
the odds are strongly against you.

Personally, I would definitely react emotionally to their comment - that is the way it is!
According to who? I would ask.

The questions about “royalties� are crucial, and I know nothing of these matters, if you have the ability to retain your personal ownership of any royalties, only then would I imagine that you had any leverage.

An option is to refuse to accept their offer and retain the shares! Which they will then deliberately dissolve by forcing issues.
You could consider making them an offer for the business based on their own valuation of your shares!!!! R24,000 for 25% - Therefore R72,000 for the business! How much do you yourself feel the business is worth?

Seth Godin's blog. http://sethgodin.typepad.com/seths_b...on-equity.html
Although this is rather long, I have entered the blog in its entirety as I feel it is excellent!
Advice on equity
A friend asked me to help him think about how to split the equity in a company he was starting. His colleague is contributing office space and some key technology. My friend is responsible for where the business goes from here. I told him this:
If you apportion equity, you will certainly do it wrong.
That's because it's based on a snapshot, a moment in time.
Sure, today, your partner's share is worth 50% and yours is worth 50%. His because of what he did, yours because of what you're going to do.
But a year from now, that number can't possibly be right. You may have acquired six more pieces of software, raised millions, traveled the world, closed sales and sold the company. Wow. Or, you may have done absolutely nothing.
So, my best advice is to say, "Today, right now, your contribution is worth 5% of the company and my creation of the company is worth 5%. The other 90% is based on what each of us does over the next 18 months. Here's a list of what has to get done, and what we agree it's worth..."
And then make a list. Stuff like commenting and updating and supporting the code. Stuff like closing sales and hiring people and raising money...
Of course, you leave an out for unforeseen events and dilution based on bringing in new partners.
You may end up having small agreements about how to interpret the list, but this sort of advance flexibility is well worth the awkward conversation it takes to get it started. Another tip: put in a clause appointing a trusted third party as an arbitrator, so small disagreements don't snowball into litigation.

Yvonne