|1826 RULES CLARIFICATIONS|
The Société Nationale des Chemins de fer Français "Bonds may be bought from or sold to the Bank Pool by players or the SNCF at their face value of F100."
is incorrect and should read
"Bonds may be bought from or sold to the Bank Pool by players at their face value of F100. The SNCF may redeem its Bonds but not issue them."
A Player has floated a 5 Share Corporation and has at some point sold his own holdings down to 40% while the other 60% is in the treasury. If this corporation now converts to a 10 Share Corporation then the President (who has only the President's Certificate) now has 20%, the remaining 50% is transferred into the treasury and joins the existing 30% previously held in there.
Note, shares are not swapped 2 for 1 (unlike the Etat and SNCF mergers) but revert from 1 share = 20% to 1 share = 10%
Note, the return on investment from a corporation that converts is effectively halved. This is because a share before conversion was earning 20% of the revenue while after conversion the same share is earning only 10%.
A Player decides to purchase the President's certificate of the Grand Central at the start of the game. He declares the starting price to be F75 and pays F150 to the bank for the 40% President's Certificate. On his next turn of the stock round he purchases one more share (his third) for F75. This floats the GC for a total outlay of F225. The player now has 60% of the GC stock so may not purchase any more. The remaining 40% (2 shares) are transferred to the Treasury along with F225.
If when the GC operates it earns a revenue of F130 (a typical example from the first run), then it pays F26 per share. In the example above the President will receive F78 (3 shares or 60%) and the Corporation will receive F52 (2 shares or 40%).
Player A is the President of the GC and holds 40% (the President's Certificate), Player B also holds 40% (two 20% certificates), the Bank Pool holds the other single 20% share.
Player A can sell a single share (20%) to the Bank Pool (he is not allowed to sell both shares as that would mean that the Bank Pool would exceed the 50% share limit), and transfer the Presidency of the GC to Player B. Player A swaps his President's Certificate of the GC for the two certificates belonging to Player B, and can now place one of these shares into the Bank Pool.
The end result is that Player A now holds a single 20% share of the GC, Player B holds the President's 40% Certificate and the Bank Pool holds two 20% certificates.
A Player holds 60% of the GC (a 5 Share Corporation) which is about to merge into the Etat (along with at least one other corporation). As the player holds 3 shares, then he ends up with a single 10% Etat share and one share is discarded into the Bank Pool, where it will eventually be part of an exchange.
A Player holds 60% of the GC and 20% of the Midi (both 5 Share Corporations). He ends up with 20% of Etat (as he did have 4 shares previously).
A Player holds 60% of the GC (a 5 Share Corporation) and 10% of the P-O (a 10 Share Corporation), both of which are going to merge with the Etat. The player ends up with 20% of the Etat (again, he had 4 shares).
A Player holds 60% of the GC and 20% of the Midi (both 5 share Corporations), both of which are going to merge with the SNCF. First the corporations are converted to 10 Share Corporations and then the player ends up with 20% of the SNCF (as he did hold 4 shares).
The situation can be easily resolved with some forward planning by ensuring that stock is sold out from the treasury of a potential merger candidate into the Bank Pool before the merger occurs.
Note, this does not apply to the SNCF as its merger mechanism is slightly different; its treasury stock is transferred to the Bank Pool during formation.
At the start of the game, a 5-Share corporation receives three tokens. It does not receive another when it converts to a 10-Share corporation or a fifth at the start of Phase 10H.
It is suggested that at the start of the game, a token from each of the six Paris corporations is placed on the map, in the adjacent hex. This will remind players that the hex may not be built until the corporation has floated. Once a corporation floats a token is placed in the home city, so the token previously placed can now be moved into the adjacent home station.
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