Investments Terms & Conditions
- Investment Structure & Purpose
- Investment Type: This is a silent partnership investment. The investor provides capital and receives a share of the profits but has no involvement in the day-to-day management or operations.
- Purpose of Investment: The funds will be used for specific business activities, such as expanding inventory, renovating the showroom, or acquiring new service equipment. This will be clearly stated and agreed upon by both parties.
- Investment Amount: The agreed-upon investment amount is BDT 1500,000 (Fifteen Lakh Bangladeshi Taka). This amount is non-negotiable and must be transferred to the business’s designated bank account within 15 days of signing this agreement.
- Returns & Profit Distribution
- Return on Investment (ROI): The investor is entitled to a 25% share of the net annual profit of the business. The net profit is calculated after deducting all operational costs, including salaries, rent, taxes, and other overheads.
- Calculation of Profits: A certified public accountant will be hired annually to audit the business’s financial statements and determine the net profit. A copy of this report will be provided to the investor.
- Payment Schedule: The investor’s share of the profit will be disbursed in a lump sum within 30 days of the annual financial audit completion.
- No Fixed Interest: This is a profit-sharing arrangement, not a loan. There is no guaranteed fixed interest rate or return. The profitability of the investment is directly tied to the business’s performance.
- Investment Period & Exit Clause
- Investment Term: The initial investment period is 36 months (3 years), starting from the date the funds are received.
- Early Exit: An early withdrawal of the principal amount is not permitted during the first 36 months. Any request for early withdrawal will be subject to a penalty of 15% of the principal, and the remaining amount will be paid out within 90 days.
- Full Exit/Termination: At the end of the 36-month term, the investor may request a full return of their principal investment. The business will have a grace period of up to 180 days to return the principal. The agreement may be renewed for another term upon mutual consent.
- Risk Disclosure & Legal Provisions
- Investment Risk: The investor acknowledges that all investments carry a degree of risk. Borak Motors is not liable for any losses incurred due to market fluctuations, economic downturns, or unforeseen business challenges. The principal investment is not guaranteed.
- Dispute Resolution: In the event of a dispute, both parties agree to first enter into mediation. If mediation fails, the matter will be settled through arbitration under the laws of Bangladesh. The jurisdiction for any legal action will be the relevant court in the district where the business is registered.
- Confidentiality: The investor agrees to maintain strict confidentiality regarding all financial data, business strategies, and trade secrets of Borak Motors.
- Documentation: All transactions and agreements will be documented in writing. The investor will receive a signed copy of this agreement and an official receipt for the investment amount.
