When it is time to close the doors the assets in the business
should be sold and debts repaid. If there is any cash leftover it
should be distributed in the following order:
- Grunts that put in cash or cash equivalents should be paid back
in an amount equal to their contribution. This payback will not
diminish their equity holding, however (if it matters).
- If there is not enough cash to cover the cash contributions
then payments in proportion to the cash contributions should be
made. So, divide an individual Grunt's cash contributions and
divide by the total cash contributions and give them that percent
of the leftover cash.
- If there is any cash left over it should be distributed to all
the Grunts according to their percent of equity.
The goal is to make everyone as whole again as possible. Legal
creditors (including personal credit cards) always get first rights
to the cash. Anyone who put in cash took larger risks and care
should be taken to preserve their cash.