One of our members is a corporate lawyer, and here's what he has to say about their plan...
"I have more than a decade of experience as a corporate lawyer helping to establish and finance numerous businesses, including publicly-traded corporations. The so-called "plan" is one that should be treated with a *lot* of skepticism. "Anyone can invest and everyone gets a say, and if it doesn't work out, everyone gets the money back" is not at all how a limited partnership works. What they are describing is basically a public offering of securities, activity which is heavily regulated under United States securities laws. Setting up something like what they are talking about will cost hundreds of thousands of dollars in professional fees for lawyers, accountants and auditors, so people should not assume that there would be any significant amount of money that could be returned to the limited partners in the event that the project fails.
The anonymous folks who are setting this up claim to be businessmen, but assuming that's true, they are displaying a remarkably cavalier attention to the legal implications of what they are trying to get us to buy into."
"I have more than a decade of experience as a corporate lawyer helping to establish and finance numerous businesses, including publicly-traded corporations. The so-called "plan" is one that should be treated with a *lot* of skepticism. "Anyone can invest and everyone gets a say, and if it doesn't work out, everyone gets the money back" is not at all how a limited partnership works. What they are describing is basically a public offering of securities, activity which is heavily regulated under United States securities laws. Setting up something like what they are talking about will cost hundreds of thousands of dollars in professional fees for lawyers, accountants and auditors, so people should not assume that there would be any significant amount of money that could be returned to the limited partners in the event that the project fails.
The anonymous folks who are setting this up claim to be businessmen, but assuming that's true, they are displaying a remarkably cavalier attention to the legal implications of what they are trying to get us to buy into."
Reply
Leave a comment