Frequently Asked Questions and Answers regarding your CBYS Ltd. share
Question: How many shares of CBYS Ltd. can I own?
Answer: CBYS Ltd. has issued 100 shares. One person is entitled to own only one share in the capital of CBYS Ltd. As explained in the next question, the selling and purchase price of the share is controlled each year by the shareholders. CBYS Ltd. does not operate for a profit. Its annual budget is structured to, basically, pay for the costs of owning and maintaining its property. This is why CBYS Ltd. has never been, nor will it ever be considered to be, an “investment” in the true sense; rather, the share represents the holder’s right to use and enjoy the property owned by CBYS Ltd., much like holding a membership in a club. The only way a new person can acquire a share is if an existing shareholder advises the directors that he/she wishes to sell his/her share. The directors control the sale and transfer of shares and follow the procedure and rules of approving transfers in the order of seniority of the applicants who have been first approved by the directors for the waiting list of purchasers. All shares must be sold and transferred in this manner, with the exception of the provisions in the Articles relating to transfers on death or transfers to a child of an owner.
Question: How is the share price derived and how often does it change?
Answer: Prior to the Annual General Meeting in each year, the Directors shall recommend the price at which shareholders may sell their shares (hereinafter referred to as the “Sale Price”) and shall also recommend the Initiation Fee, which shall include the transfer fee, shall be payable by the Transferee (purchaser) to the Company upon the transfer of any share. The Sale Price shall then be fixed by Ordinary Resolution of the Shareholders at the Annual General Meeting unless such Sale Price is less than that of the previous year, in which case a Special Resolution shall be Centre Bay Yacht Station Ltd. 410 Sea Shell Lane North Vancouver, BC V7G 1R2 or firstname.lastname@example.org. The Initiation Fee shall also be fixed by Ordinary Resolution of the shareholders at the Annual General Meeting. No transfer of shares of the Company shall be made at a price in excess of the Sale Price and Initiation Fee fixed by the shareholders at the previous Annual General Meeting. The recommendation of the Sale Price is not based upon or reflective of the value of the Companies assets; rather it is simply a price which the Directors determine and recommend to the shareholders based upon historical and other factors. The shareholders are not bound to accept such recommendation.
Question: What do I expect to get in return when I want to sell my share?
Answer: The selling shareholder will receive whatever the Sale Price is for that particular year, plus whatever the portion of the maintenance fee which is unused at the time of sale – assuming the shareholder has paid his/her Annual Maintenance Fee and any unpaid assessments levied by the Directors. Since the Company runs on a calendar year basis, as an example, if you decide to sell your share in August, then you would receive the Sale Price plus 4 months worth of the Annual Maintenance Fee. If the Annual Maintenance Fee or any assessment has not been paid by the selling shareholder, then it will (with interest) be deducted from the Sale Price of the share.
Question: Who do I contact when I want to sell my share?
Answer: Currently, Trina Ridley at Richards, Buell & Sutton is the administrator of any CBYS share transfer. Trina will require a written request from the selling shareholder of their desire to sell his/her share (either fax or e-mail is fine) before the transfer can occur. If there is a waiting list of buyers, the process usually takes 3 to 4 weeks before you receive the funds. If there is nobody waiting to buy a share, the selling shareholder remains responsible for the payment of the Maintenance Fee and any assessments until a buyer is identified. Trina’s contact information is: Phone: 604-661-9258 Fax: 604-688-3830 E-mail: email@example.com