MyADSL's legal future: Your feedback needed

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rpm

rpm

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Hi folks

I have been advised by various people that it will be advantageous to register MyADSL as a company. My initial reaction was not positive, but as I spoke to more people it became evident that it is the best route to follow. One of my main concerns was that it will results in additional work and money to run the site, but the positives seems to outweigh the negatives. I am currently in favour of this registration, but would obviously first like to get your approval before I progress with this issue. Here is a short summary of the positives and negatives:

Positives
  • MyADSL will operate as an independent legal entity.
  • The MyADSL assets will be owned by a company and not an individual
  • MyADSL’s future will not be jeopardized by the non-involvement or death of an individual
  • Registering MyADSL as a company will establish legal and public accountability
  • Contracts will be entered into in the name of a company and not that of an individual
Negatives
  • Additional finances to cover the running costs of a ‘company’
  • Additional administrative workload
I think we are currently in a position to overcome the negatives (we are able to cover all the costs and handle the additional work), and therefore feel it is a good time to take a step to register as a company. We have also looked at a Section 21 company, but at this stage the additional overhead and limitations does not justify the small advantage of tax savings (we make a loss anyway). I can guarantee you that nothing will change regarding the site and our aims. It will place us in a much better legal position to launch campaigns and continue with what we are doing without the problem of legal action against a single individual.

Please give your views/feedback on this issue.

Regards,

RPM
 
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Mabye this means we as members should provide some sort of munitry support? I think registering is expensive.

But if it could be done I support it - if Telkom does turn against us rpm will not bear the brunt and it might give us more recogniton - just think - Copyright MyBroadband CC (or something like that) - they might start listening

My 2 cents
 
Hi Kilps

Thanks for the feedback and willingness to assist financially.

The finances will be taken care of by advertising…we already have a few bigger advertisers that will cover all these costs (they will be added soon…just wanted to clear this with you guys first). There is therefore no financial concern, simply a rise in expenses. The site is (and has been for some time) financially secure. We could even pay for a few prizes along the way :D

There should and will never be a registration fee to be part of this forum. This site and forum must (and will) always remain completely free and open to all Internet users.

Regards,

RPM
 
hmmm.. MyADSL (PTY) Ltd.
will take some getting used to :)
 
Hi AdLo and Mad

Thanks for the feedback.

I think the main advantage will be legally. It is therefore a balance between the legal advantages versus the additional costs and work. And then there are obviously the issues that AdLo has mentioned…

Please keep the comments coming!

Regards,

RPM
 
Something to bear in mind - the legal definition of such entities will be changing shortly (I have no time-line, so don't ask), and there will be a 'merging/blurring' to some extent between NPO's, S/21's, CC's and PTY's. This will impact on legal standing, tax administrative workload, and who knows what else. Best to check with DTI and SARS...
 
Given that the targets of our endeavours have shown a willingness to go the legal route (and not to mention their much deeper pockets) anything that limits the legal liabilities of individual members is to be welcomed.
 
I will back everything which will protect RPM in anyway. If its necessary to shoulder some of the responsibility I am part of it. Also financially if its necessary.
 
Let me ask a possibly dumb question:

Given various ISP's and Companies probable irritation at MyAdsl, to start with; If MyAdsl becomes a company - is there:

Any way that any other Company or legislative body can, might or theoretically be able to bring pressure to bear against MyAdsl to silence it or threaten it - either directly or indirectly?

And although there are advantages to becoming a Pty Ltd - does this open up any potential levers against MyAdsl, via legislative or other bodies - that could be used covertly or overtly, to harass MyAdsl?

Just doing my usual 8 chess moves ahead wondering.
Because if I was a Company that was irritated or angered by MyAdsl in some way - would this potential move give me any openings to easily cause trouble or silence MyAdsl somewhere down the line - either directly, or by proxy, via some other Government body?

(I'm just looking at all angles to help ensure the continued independence and freedom that MyAdsl and its users enjoy)
 
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A few months back I made the suggestion that myadsl should be registered as a company. So I'm quite pleased that you are thinking about it now rpm. As long as you explore all the avenues, as LoneGunman suggests above.

You have my support, as always.
 
I support rpm in limiting his personal liability, but is there a reason that it is neccessary to register a company? Surely a cc will do the same job, with less administration and costs?
 
My opinion
I think it is essential to formalise this body in one way or another. Given that we are rather philanthropic by nature - we give free advice, free time, free opinion - my suggestion would be that we register this site as a NPO. Why?
1. we are a forum not for gain already - what we do is for the greater good of the economy, telecomms, the industry.
2. By remaining a forum not for gain (NPO) we keep our already established public face unsullied - in other words, we do not stand to profit in any way from our activities
3. As an NPO we also do not get into that sticky situation where we have a conflict of interest arising in any way shape or form out of our activities.

We also need to be very very careful on how the forum/site and NPO is funded. We cannot be a neutral voice where say for example, we receive funding or sponsorship from MTN for arguments sake. Then we are in the same laughable position as the National Consumer Forum that is funded sponsored and I think actually driven by Telkom.

So my vote would be for an NPO with a very clear and unambiguous mission statement and very clear policy.

I am willing to give my time and I am willing to contribute monthly towards running costs should that ever be necessary.

RPM, you have my full support as ever for whatever you decide to do, but I do think that in order to remain the definitive voice of reason, we have to remain impartial and above reproach. I NEVER want to be in a situation on this forum where i have to defend our position based on our company structure. We also need to be aware that we will have to publish hellish disclaimers all over the show - the views expressed on this forum are not necessarily the views of the directoras and shareholders kind of thing - this dilutes our united front somewhat.
Just a brain dump. Perhaps Mr Buys and company would like to comment and give some legal councel on this?
 
woa, this site MUST be popular. Just imagine... Telkom offering rpm like 10 million rand to buy the company :D amazin'
 
noone - yeah, that's one of the maybe potential problems somewhere down the line, that I was partly looking at. What happens if your enemies decide to simply try and buy you out as a company, or exert pressure in other ways, all ultimately designed to silence or block you. When you're already making thousands of millions of rands, your 'small change' can wield a lot of influence on other Companies and legislative bodies.
EDIT: Thanks for that ic..
methinks MyAdsl needs serious professional advice on this one, given the context in which the forum operates - as 'other regular' companies dont have enemies like this Forum does :)
 
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Any thought given to registering the body as a trust? Also a simple process. Low maintenance and inexpensive to set up.

I agree with Peapod - perhaps by only allowing any one advertiser X amount of advertising we can dampen any potential problems whereby the loss of their revenue will have little or no impact. Ie if they dont like what the forum is saying they're free to take their money and . . er . . . walk off.

Anyhow - great idea protecting the future of the forum.
 
Hi guys

Thanks again for the great feedback.

VQuest: I took note of all the discussions regarding the registration of a company over the ‘years’, but did not consider it a valuable move at that stage because of the additional overhead. We are in a better position now to carry this overhead. Or maybe I am just slow and it takes a few months to sink in :D

LoneGunman: Valuable questions. One of the main aims is that we will have more freedom to launch campaigns etc. If a company provides more risks it is not worth the move.

Regarding a CC & 21: I have been advised that there is still ‘partial’ legal liability by the CC’s members. It will definitely be easier than a Pty, but when we do through the whole story might as well select the best one. We have also discussed the Section 21 option: The only concern is the limitations and extra overhead accompanying this option. It obviously brings some additional advantages which will be taken into account.

Please keep the comments coming. As always this feedback will govern our decisions.

Regards,

RPM
 
Hi LoneGunman, Noone

I obviously want nobody else but us (the MyADSL members) to have any say over what we do. My main aim for this move is to create freedom (just like the decision to get a dedicated server). If it does not give us more freedom and provide more security to the site, then another plan will be made.

Regards,

RPM
LoneGunman said:
noone - yeah, that's one of the maybe potential problems somewhere down the line, that I was partly looking at. What happens if your enemies decide to simply try and buy you out as a company, or exert pressure in other ways, all ultimately designed to silence or block you. When you're already making thousands of millions of rands, your 'small change' can wield a lot of influence on other Companies and legislative bodies.
EDIT: Thanks for that ic..
methinks MyAdsl needs serious professional advice on this one, given the context in which the forum operates - as 'other regular' companies dont have enemies like this Forum does :)
Click to expand...
 
as a member and having some experience in the area i think taking on some kind of juristic personality is essential - imho the forum is very vulnerable in its current set-up - the law on online defamation and copyright infringement remains untested in SA and it is possible that someone with a gripe could get the site taken down / involve rpm in a costly and lenghty battle

will post a full reponse later when time allows

rpm - i have a spare registered CC and would be happy to donate time to the cause in doing the change of name and membership or otherwise being helpful (& will be in jhb for a couple of days in the w/c 13 June)

growing pains :rolleyes:
 
possible trust

I support whatever move is taken. Would also like to suggest you investigate Trusts. It is probably worth spending a bit of the money you don't have on serious legal/accounting advice, before you jump in.
 
I am in favour of having MyAdsl registered as a 'company'. but favour it as a Section 21 company as RPM had suggested earlier. At the end of the day, our goal is to campaign for world class broadband in South Africa and not to make money off this.

RPM, if Telkom ever decides to make an offer to buy MyAdsl years from now, decline it, no matter what the offer. Accepting such offers would mean our defeat. :)

I'm glad that we have somebody like RPM to head these affairs, but remember, just shout if you need help.
 
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