Phase 1 - Setting Up
- Select a Commercial Partner. A long list could be provided of criteria that should be used in selecting a commercial partner
- Agree with the Commercial Partner on a method for calculating the return to investors
- Agree with commercial partner on terms of End-User-Agreement. This will be commercial in confidence
- Get a lawyer to draw up a pro-forma Trust deed. CleaSky’s can be used as a template
- Get a lawyer to draw up a pro-forma Investment Agreement between Trustee Co and the commercial partner
- Set up a not profit company limited by guarantee to be the Admin Company
- Establish a bank account for the Admin Company
- Get a lawyer to draw up a pro-forma Operations Agreement between Trustee Co and the Admin Company
- Reach agreement with the Commercial Partner on the process to be used for exchanging information on potential projects, on signing-off on a project, of keeping records, of monitoring power generated, of billing for power generated, of dealing with the breakdown between capital repayment and interest, of transferring funds to the Admin Company for distribution to investors, of monitoring end user insurance cover and dealing with any issues that arise. Very likely that this will involve some shared records in the cloud.
- Develop a web-based admin system for handling project announcement, registration of investors, investor expression of interest, investor application for units, unit allocation, electricity sales revenue recording, unit holder payment record keeping,
- Prepare pro-forma information memorandum.
Phase 2 – Project Initiation
- Reach agreement with Commercial Partner on terms of agreement
- Use accounting firm to cookie-cutter set up new trust and trustee company
- Set up bank account for trust
- Customise Investment Agreement
- Customise Operations Agreement
- Customise Information Memorandum
- Customise Application form
- Augment record system to accommodate new project
- Set up Project on website
- Email out applications to interested investors
- Allocate units once funds deposited
- Pay invoice from Commercial Partner from investor deposits
- Remove project from public view once fully subscribed
Phase 3 – Project Administration
Monthly
- Record power generation
Quarterly
- Invoice commercial partner for generation
- Use web based system to calculate payments to each investpr
- Transfer funds into investor bank accounts
- Email investors with details of capital repayment and interest components
Annually
- ASIC compliance form and payment
- Prepare financial statements
- Submit tax return