Example of Profit Distribution
Let's assume a hypothetical profit of $200,000 for a future fiscal year. The high ring has decided to redeem some preferred shares and put “excess' profit into Consensus Foundation. In effect, this hypothetical profit will be allocated to six different places, as specified by the articles of Consensus.
Profit $200,000 Voluntary Tax
to the UN$40,000 Subtotal $160,000 Preferred Share Dividends 8,609 preferred shares still outstanding, paying a $9 dividend.
All preferred dividends are up to date. No accrued payments are required.
$77,481 Subtotal $82,519 Redeem Preferred Shares High ring decides to redeem 300 preferred shares. This redemption requires the original $100 investment plus an $11 premium.
$33,300 Subtotal $49,219 Payments to Dividend Earning Profile* $2,600 Funds directed to Consensus Foundation $46,619 I urge readers to think deeply about this model of profit distribution for it is a great mechanism that balances a fair reward for original investors yet dedicates “extra” profits into a clearly altruistic place. Profits will no longer have a selfish connotation, and customers will be more ready to do business with a more altruistically inclined organization.
*This calculation is shown on the next webpage.
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