How It Works

The Fine Points

Administrative Services Agreement

Knightswood and Subco enter into an administrative services agreement documenting the fees, services and other contractual arrangements.

Knightswood is not involved in the day-to-day operations of Subco and does not participate in its profits or losses. As a result, there is no requirement for Subco to be audited or consolidated into the financial statements of Knightswood.

Option Agreement

Our put/call option agreement safeguards the interests of both parties. Either Knightswood or Privco may sever the relationship with the other at any time without penalty.

Investor Freedom

In addition to buying debentures in their registered plans, your investors can purchase debentures with non-registered funds and contribute the debentures to their registered plans if they choose.