Code of Practice for Investment Links

By Vernon Rogers,2014-07-09 10:36
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Code of Practice for Investment Links ...

    Investment Code of Practise

    Released August 2007

Developed By Amaka Ya Bwingi LTD

    February 2010(revised version)

    The document is reviewed regularly

    First published in 2007

    Copyright? 2009

    INTRODUCTION 3 Business Plan Submission 3 Investor Notice 3 CODE OF PRACTICE FOR INVESTMENTS 4 Category I 4 Finder’s Fee 4 Category 2 4 Continuous Support System 4 Category 3 5 Share Dealings 5 Category 4 5 Project Investment 5 Category 5 6 Skill Investment 6 Category 6 6 Equipment Lease 6 SETTLEMENT CREDIT PERIOD 7 Payments 7 COMPLAINT PROCEDURE 7 Logging a complaint 7 CONTACT DETAILS 8

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    This document provides guidance on how the Phase III of AYB will work.

    The document outlines guide lines to help stay focussed and create an understanding base for investment.

    All potential investors and investment beneficiary organisations (submitting their business plans must obtain this document).

Business Plan Submission

    To organisations submitting business plans it is advised that the plans that you submit must be for an ongoing and already running business. New businesses haves a lot of uncertainties. This however should not discourage you to be innovative. There is just more likelihood for an investor to invest in your existing ventures as it has a track record and you have the experience of running it, and most likely it has a measurable expansion focus.

    The type of investors we are attracting are those in most cases who would like to see returns in a specified period and starting a new business all together may not be attractive.

    Further more business must be attractive and should demonstrate growth from the time you started it and it must be market led.

    Investor Notice

    To the investors in any of the categories mentioned in the document, you are advised that any business investment has risks and you must be a risk taker to engage in any form of business. There are however greater rewards to those who persist. Businesses do not always fail and in most cases they succeed, but you are advised to consider both sides of potential success and potential failure and work out what you may do in the occurrence of either event.

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Code of Practice for Investments

The following rules apply to the defined investments

Category I

    Finder’s Fee

1.1 An investor is connected to an investment within the network

    1.2 Negotiations are supervised by AYB

    1.3 A nominal introductory administration fee is paid to AYB by the investor or

    the investment beneficiary company for the link

    1.4 Upon successful negotiation and agreements the investor and the

    investment beneficiary company pay a finder’s fee of ---(negotiable)%

    value of the investment or as negotiated by all parties.

    1.5 All other arrangements are left to the investor and the investment

    beneficiary company.

    1.6 When the deal and linking of the two parties by AYB is done, the business

    is closed and AYB will have no further involvement in the dealings

    between the linked parties.

    1.7 However in the interest of the network relationship for one year AYB may

    monitor the progress of the relationship between the investor and the

    investment beneficiary company. This may not incur any charges.

    1.8 During the follow up AYB may recommend sustainable programs between

    the investor and the investment beneficiary company. If expenses are

    involved AYB will not bare the cost.

    1.9 AYB reserves the right to investigate and take legal action for any miss

    representation after the link has been completed or during the process of

    negotiations and or the life time of the investment between the parties.

Category 2

Continuous Support System

    2.1 AYB will charge a nominal annual fee to the parties after being linked

    in the investment for AYB’s continuous presence.

    2.1.1 The role of AYB shall be to regularly monitor on behalf of the investor

    and in the interest of the investment performance of the business. 2.1.2 AYB shall regularly advise the investment business to attend AYB

    development workshop tailored to the needs of the enterprise. 2.1.3 AYB will help in developing legal contracts by referral to a resident AYB


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    2.2 Some services will be defined as chargeable services if they fall outside

    the normal contractual investment link arrangement.

Category 3

Share Dealings

3.1 These are normally by invitation

    3.2 Various types of shares are may be applicable in AYB which an invited

    investor may participate in.

    3.3 An investor is issued with a share certificate. In this category you will

    become a direct share holder in AYB Corporation. 3.4 Certain types of shares will accord the share holder a presence on the


    3.5 Dividends are issued at regular intervals or as advised during that

    trading period.

    3.6 Share holders may not have operational responsibility in AYB. 3.7 The companies house in England and Wales regulates how the shares


    3.8 Profits made as a result of the companies dealings in the shares floated

    will be declared in the normal manner via our accountants who

    produce our annual accounts.

    3.9 We may buy shares in other companies as an organisation.

Category 4

Project Investment

    4.1 There are one offs or continuous fundraising projects that AYB may run

    from time to time.

    4.2 An investor can participate in these partnership projects by buying that

    one off share at the value advertised.

    4.3 At the end of that project profits and losses are shared as accordingly. 4.4 The project ends as soon as the dividends are issued back with the

    principal amount which was invested. (Principal + Profit) or (Principal-

    Loss) or (Principal-Principal, a total loss).

    4.5 There is no roll over. But you may invest again in another project or

    the same project if it continues.

    4.6 AYB responsibility in any of the project investment is to advise you by

    way of written documentation of the expected returns and also the

    expected risks.

    4.7 AYB reserves the right to turn down an applicant. The process is

    carried through as systematic interview.

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    4.7.1 If you are a risk taker you are likely to do well in this forum otherwise

    keep your money in a savings account with your bank. 4.7.2 Business risks vary from natural factors to technical matters. 4.7.3 Therefore you are advised to consider very carefully as to why you

    want to invest in a particular project.

    4.7.4 You may ask for previous show cases and what happened in each

    scenario before you take the risk to invest in a project. 4.8 For each project investment a legal agreement is entered into and you

    are advised to raise your own witness at the time of signing the


Category 5

Skill Investment

    5.1 Skills can be invested and valued in AYB, for particular projects 5.2 Your undertaking is considered as being self employed. 5.3 Under this category a skill means abilities by qualification which you

    can contribute with evidential output, and other talents. 5.4 These are rewarded financially in the event of a profit being made. 5.5 In case of a loss you do not carry any business legal responsibility,

    unless it arises by you premeditated negligence of duty and


    5.6 The contractual terms will be defined for any instance of engagement.

    It is not an employment.

    5.7 The skill investor must organise sufficient cover when engaging in risk

    investment such as construction work and as the case might be. 5.8 In skill investment you may negotiate a fee and upon agreement issue

    an invoice to AYB.

    5.9 Other terms of contractual agreement are governed by the English Law

    for work or investment undertaken in England. 5.10 For engagement undertaken in the AYB branches world wide will be

    governed by the law of that country.

    5.11 Cross International Investments the international trade law will be


Category 6

Equipment Lease

    6.1 Equipment can be leased to AYB for the purposes of carrying out and

    Investment project.

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    6.2 The value of leasing your equipment is agreed from the onset and an

    agreement is signed.

    6.3 The rates are paid on account or at the end of the lease period or as


    6.4 The leaser/or AYB must arrange cover for the equipment for the

    purpose or change or use. The equipment is termed as borrowed from

    an external source.

    6.5 The equipment during the term of use by AYB still remains the

    property of the leaser

    Definition of Equipment: Any machinery or property that AYB may 6.6

    be in need of use for specified purposes.

    Settlement Credit Period


    7.1 AYB has a minimum credit period of 30 days in which to settle all


    7.2 If there is need of increased length of time it will be in steps of two

    credit periods of 60 days.

    7.3 Or as negotiated and agreed between the parties.

    Complaint Procedure

    Sending a complaint

    8.1 In case of any complaint, a complainant must first ring the public

    relations directorate, and discuss a quick resolution. 8.2 If that fails write to the complaints public relations directorate detail

    your complaint and give it 14 days before receiving and

    acknowledgement of receipt of the complaint.

    8.3 Within 30 days from acknowledgement of the receipt of your complaint

    you will be written to offering a solution.

    8.4 If this is satisfactory the case is closed.

    8.5 Otherwise you may appeal by writing to the chairman or the chief

    executive of the corporation who will call you for an interview and work

    out the way forward. If the proposal is satisfactory the case is closed. 8.6 Otherwise you may seek external reference.

    8.7 A legitimate complaint may not affect the future investment in the AYB


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    Contact Details


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