Simcountry is a multiplayer Internet game in which you are the president, commander in chief, and industrial leader. You have to make the tough decisions about cutting or raising taxes, how to allocate the federal budget, what kind of infrastructure you want, etc..
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Private corps vs shares

Topics: Beginners: Private corps vs shares


Tuesday, May 24, 2016 - 04:44 pm Click here to edit this post
I could have sworn I posted this already, so if I am missing my own thread, I apologize

Anyway, what's the big advantage between having a private corporation (owned 100% by your enterprise) VS one that is only owned 51% by your enterprise?

Documentation suggests it would be better to always go for the latter, but when I look at countries around the world, almost every private corp is the former


Tuesday, May 24, 2016 - 08:03 pm Click here to edit this post
I am the king of shares, among other things. I am interested if you got my message about garrisons first though.


Tuesday, May 24, 2016 - 08:23 pm Click here to edit this post
I did. I didn't see the notification though. I'll reply shortly.

Also, given that you do shares, and you are good at this game, I will do so also.


Wednesday, May 25, 2016 - 01:18 am Click here to edit this post
Alright. As to your question, the only difference between one of your state or private corps, which you own 100% of, and a public corp, in which you sell down to 51% ownership of, is that you will receive 100% of the "profit payments" of the private or state corp but only 51% of those payments from the public corp, with the balance of the 49% of payments divided among the remaining share holders. If you check any corp under "cash flow data", you can fund the field labeled "profit payments made" which includes the total amount of profit payments paid by that corp, state, private, or public. For any of your state, private, or public corps, that you own the most shares of, you can set the corps policy for the % of profits to be paid to the owner(s).

Where public corps unlock their power is where the controller owns less than 25% of shares. This is possible where the balance of the rest of the shares has many owners or investment fund owners, as investment funds may not control a corp. Such corps are identified as "truly" or "full" public corps, and may be upgraded to a higher level than any other corp, to 250/250. These corps can produce a higher quality/more valuable product using less workers than any other type. This is very valuable not only to the corp owners but also the host country which can collect more tax revenue from such a well-performing corp. One key to my very powerful economies on LU is the very large number of truly public corps I host in my countries.


Wednesday, May 25, 2016 - 04:24 pm Click here to edit this post
How do you ensure no enterprise tries to steal it from you by taking just slightly more shares


Wednesday, May 25, 2016 - 09:50 pm Click here to edit this post
The surest way is to start with an economically powerful empire. Having a number of countries gives you access to multiple investment funds. Your investment funds cannot purchase shares in their own countries, but they can purchase shares in public corps in your other countries. A minimum of a 3 countries is needed, but more gives you access to more funds. Each investment fund can own up to 40% of a public corp and can never be the corps owner/controller. This makes is possible for 2 funds to own up to 80% of a corp with your country owning the remaining 20-24.99%. In that scenario, you control all the shares and the corp receives the benefit of being "truly" public.

This is one benefit to growing your investment funds in your countries. Larger investment funds also increase the monthly income of your workers by distributing larger payouts. More worker income leads to more tax income, more health/education contributions, and, yes, more contributions to the investment fund itself. Your population also becomes larger consumers of products with the extra income.


Monday, November 28, 2016 - 05:42 am Click here to edit this post

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