Things Company Owners Can Do Which They Cannot Do if Financed by Equity Investors

Establish and maintain whatever personal compensation they wish.

Solely set and manage the terms of employment for any and all employees.

Be able to legally terminate for cause any and all employees.

Have company facilities located wherever they wish and be as they wish.

Furnish and staff offices and executive physical therapy facilities as wished.

Determine company financed executive vacation policies and schedules.

Hire whoever they wish regardless of relationship or qualification.

Set legal employee and customer policies and practices as they wish.

Buy and negotiate the terms of insurance policies, including naming of beneficiaries.

Develop and acquire health and retirement arrangements for themselves.

Determine the company cars, other facilities and services which are appropriate for themselves.

Arrange for the company to engage in tax strategies and activities resulting in lower reported profits.

Compensate employees as determined appropriate, even if appearing to be excessive.

Recruit senior executives on whatever terms they wish.

Make corporate acquisitions or close business elements as they wish.

Invest in or loan to other privately-owned companies which they owned.

Make company charitable contributions and longer-term commitments as they wish.

Manage the business as if they, the employees and the community were the only interested parties.

Royalty investors, not being equity owners, are only concerned with the company’s contractual compliance and the growth of the company’s revenues. Equity investors will be interested in many of the above listed actions as they impact levels of reported company profits and valuation.

Royalties can be redeemed, at will and on maximum known terms. Terminating the equity holder’s interests in and company shareholder rights is a different situation.

Royalties are the better way of both investing in and financing of privately-owned companies.

 

© Copyright 2019 British Far East Holdings Ltd. All rights reserved.

Arthur Lipper, Chairman
British Far East Holdings Ltd.
chairman@REXRoyalties.com
858 793 7100

Blog Management: Viktor Filiba
termic.publishing@gmail.com