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Start drafting an operating agreement
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Closes #72.
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chadwhitacre committed May 22, 2017
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4 changes: 2 additions & 2 deletions scss/variables.scss
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$chronicle: 'Chronicle SSm A', 'Chronicle SSm B';
$ideal: 'Ideal Sans SSm A', 'Ideal Sans SSm B', 'Ideal Sans SSm', Helvetica, sans-serif;
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nav_title = 'The Big Picture'
nav_children = ['welcome', 'mission', 'values', 'brand', 'strategy', 'customers', 'org-chart',
'roadmap']
nav_children = ['welcome', 'operating-agreement', 'mission', 'values', 'brand', 'strategy',
'customers', 'org-chart', 'roadmap']
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133 changes: 133 additions & 0 deletions www/big-picture/operating-agreement.spt
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nav_title = "Operating Agreement"
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Gratipay, LLC is a worker-owned cooperative, organized under and subject to the
laws of the Commonwealth of Pennsylvania in the United States of America. In
this document, “Gratipay,” “the company,” and
“the cooperative” refer to Gratipay, LLC. This is the operating
agreement that defines how the members of Gratipay govern the cooperative,
manage its money, and share its profits and losses.


## Basic Definitions

A cooperative is a democratically governed, for-profit company. Non-cooperative
companies weight power by equity, one vote per share. Cooperatives distribute
power according to the fundamental equality of all individuals, “one
member, one vote.” Gratipay subscribes to the [principles and values of
the cooperative movement](./values), and intends for this operating agreement
to be consistent with those values.

An LLC is a Limited Liability Company, a flexible legal structure that protects
its owners from legal liability, while avoiding the double-taxation that comes
with other corporate structures.

Not all LLCs are cooperatives, and not all cooperatives are LLCs, but an LLC
can be a good choice for structuring a cooperative. An LLC is an especially
compelling choice for Gratipay because of the diverse international composition
of our expected membership (this is easier handled with an LLC), and because we
were already structured as a single-member LLC before we evolved into a
cooperative.


## Membership


Gratipay is a member-managed company (we are not manager-managed). That is, all
members share in both the work of the cooperative and its profits and loses
(“active” members), as opposed to only sharing in the profits and
losses without sharing in the work (“passive” members). Members are
natural persons (also called “individuals” in this document).

Members may bind the company.

Gratipay invites new members by a vote of 75% of the existing membership. The
way to earn an invitation is to [collaborate in our work](./welcome) for a long
time.

Members may remove themselves from Gratipay at any time. Gratipay may remove a
member against their will for any reason at any time, by a vote of 75% of the
remaining membership. Gratipay automatically and immediately removes a member
(no vote required) if they:

- abstain from three votes in a row,
- spend money without authorization, or
- violate the [code of conduct](../howto/behave-well).

Gratipay may reinvite an individual at any time, with the exception that an
individual removed twice for spending money without authorization and/or
violating the code of conduct may not be invited ever again.


### Records

Gratipay maintains membership records as follows: ....


## Governance

Gratipay makes decisions in online [channels](../appendices/channels),
primarily GitHub. The basic procedure is to announce an intention and leave it
out there for a certain amount of time. If no-one objects then do it. If
another member objects then work it out. If you can't work it out then we vote.

Any member may call for a vote on anything at any time. Voting is open for one
week, and a simple majority (50%) carries the proposal. The quorum is:

- 100% if there are fewer than seven members,
- seven if there are at least seven but fewer than 35 members, and
- 20% (rounded down) if there are 35 or more members.

Members cast votes using comments and/or reactions on GitHub issues. Every
member is responsible for counting the vote.

The following decisions always require a vote with a two-week voting period and
75% needed to pass:

- changing [the big picture](./),
- removing a member against their will,
- selling or dissolving Gratipay, and
- accepting outside financing.

Gratipay is open-source software. In the case of irreconcilable conflict,
members in the minority always have the option to fork.


### Records

Gratipay maintains governance records in GitHub.


## Money

guaranteed payments, retained earnings, profit distributions

twyw for all, ya?

Members are entitled to a debit card, and are authorized to spend up to an
equal share of Gratipay's operating cash in a given calendar month, based on
the account balance and the number of members at the end of the previous month.
For example, if at the end of April the account balance is $10,000 and the
number of members is eight, then each member is authorized to spend up to
$1,250 in May. As discussed above, all members have access to Gratipay's
financial statements to inform their decision-making.

All expenses must be authorized by one or more members. If authorized by more
than one member then expenses count against their monthly allocation in a ratio
determined by consensus of the members involved. So, for example, a bill for
$100 might be authorized by three members at 50%, 30%, and 20%, so that their
monthly allocations would .


### Profits and Losses

capital contributions, capital accounts
guaranteed payments, retained earnings, profit distributions

twyw for all, ya?

### Records.

Gratipay maintains financial records in GitHub and on Inside Gratipay.

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