The Shell LLC Starter Pack has prompted a number of questions about our holding structure. We can confirm that the box holds twelve shells. It does this using compartments, which is our preferred form of corporate separation because it can be seen from above.
Each shell may be given a name. The names may be written on small pieces of paper. We ask customers not to confuse this activity with registering an organization, though we acknowledge that both can involve an unreasonable amount of stationery.
Appointing the board
The large shell can chair the meeting. The small shell can take minutes, provided nobody expects minutes to appear. A third shell may serve as the independent director. Independence is demonstrated by putting it in a different compartment.
None of these appointments changes what the shells are. This is a principle our board has found reassuring and several managers have found uncomfortable.
Our subsidiaries have no conflicting interests. They have no interests at all. Counsel requested the second sentence.
Beneficial ownership
When you hold the box, you hold the box. When somebody else holds the box, somebody else holds the box. We appreciate that this description lacks the sophistication normally associated with an ownership chart, but it has the advantage of identifying the person with the box.
Passing the box across a desk does not require a slide deck. It may require clearing a coffee cup. We recommend that practical step before discussing a transition framework.
The reporting structure
All twelve shells report to the lid. The lid reports to nobody. This arrangement was selected for its low meeting burden and because the alternative lid was out of stock.
One compartment may be described as a special-purpose vehicle. Its purpose is to prevent a shell from touching another shell. Its vehicle status remains unsubstantiated, since the box has no wheels.
Diversification means there are twelve shells instead of one. It does not mean twelve sources of income, twelve opinions, or twelve people who can cover your shift.
A resolution worth framing
Our souvenir board resolution records the company's intention to remain a collection of shells. It includes appointments, a permitted use of the desk, and a strict prohibition on describing sand as working capital.
You can read and print it from the charter page. A second printed copy may be described as additional governance, provided nobody asks what changed.*
The board considers the resolution passed. The board's silence should not be described as unanimous approval; it may be more accurately described as twelve shells remaining exactly where you put them.