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
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.
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
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
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.
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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