Does the following Q&A apply only to Investors in Taj?
Yes, only to those who invest $5501 or more. Refer back to the website for other ways of being actively involved -namely as contributors and donators.
When can I sign up to invest?
Until 30th June 2010
Is there documentation that covers my investment?
Yes. A Production and Investment Agreement (PIA) This is the contract between the investor and Oziinda films Pty Ltd under which an Investor acquires an interest in the Film and commissions Oziinda films Pty Ltd to produce and exploit the Film (according to the terms and conditions outlined in that agreement).
What if Oziinda films pty Ltd does not make the film?
You will continue to own your share of copyright until when the film is completed, and then share in copyright + your corresponding entitlement to profits commencing from when the film is released for a further 5 years from the release date.
What do I actually acquire?
Each Investor acquires a proportionate share of 100% of the copyright in the film and the ensuing rights to profits from the commercial exploitation of the film -for the first 5 years from first release of the film.
Your entitlement to profits will vary depending on which stage of the project you choose to invest. The PIA outlines how this works. You can also contact Oziinda films for further clarification.
Am I a shareholder in Oziinda films Pty Ltd?
No. You simply own a copyright share in the film as defined above.
Do I have to assign the copyright back to the production company?
Yes. This is normal. All copyright owners assign their copyright back to the production company and thereby hand all creative control to the production company for producing and exploiting the film.
What about a copyright owner’s share of profits?
Rights to profit are not affected in assigning copyright. The PIA states how profit share is dealt with.
What happens after five years?
Five years after the date of first release of the film, the Investor’s interests in the film will wholly revert to Oziinda Films Pty Ltd.
Why is profit participation limited to 5 years?
More than 85% of profits are realized within 4 years of the date of first release of the film. Remaining profit may trickle in for decades after that. It is unwieldy to manage this small profit stream for a multitude of investors. A limited timeframe for profit participation is normal in the industry.
Can an overseas investor invest?
Yes, however applicants resident outside Australia should consult their professional advisers as to whether any governmental or other consents are required, or other formalities need to be observed to enable them to invest in this Film.
Does Oziinda films have any other investment opportunities?
Oziinda Films Pty Ltd’s next project, also unique in Australian cinema, is the Bollywood-inspired romantic screwball comedy “Serena And Her Sisters” -an Australian Film Commission nominated screenplay. Pre-production planning on this project has begun.
Assuming all goes well, when will Taj be completed as a film ?
If all goes well we estimate four months after securing the required post production/marketing and distribution finance. At this stage, Oziinda films is aiming for a completion date of end October 2010.
What does Oziinda Films Pty Ltd undertake to do?
Oziinda Films Pty Ltd undertakes to
1. Make every effort to produce and complete the film unless prevented by circumstances beyond its reasonable control;
2. Use its best endeavours to stay within the budgeted cost and meet any cost overruns.
3. Control the artistic and technical aspects of the film to the highest possible production standards possible within the budget.
4. Prioritise all expenses such that “As many dollars as possible end up on the screen”.
5. Acquire all rights and consents necessary to produce, complete and market the Film;
6. Seek the Producer Tax offset certification or a 10BA Certificate for the film as appropriate, in order to optimize the commercial prospects for Oziinda films and investors in the film.
7. Establish and maintain transparency for investors regarding all financial matters associated with the production and exploitation of the film.
8. Report to the Investors bi-annually;
How is income treated by the tax department?
All distributions made to an Investor from the exploitation of the Film will be assessable to that Investor. Income is considered to be Australian-sourced income.
If I borrow to interest is the interest deductible?
If an Investor borrows on a full-recourse, arm’slength basis to finance the acquisition of an Interest, then generally the interest should be deductible in the year in which it is incurred. Investors should however consult their tax advisor.
What taxation advice can I get from Oziinda Films Pty Ltd?
Oziinda Films Pty Ltd does not propose to give taxation advice nor accept any responsibility or liability for any taxation consequence to Investors. Investors are advised to seek their own independent advice prior to investing.
What are the risks?
This a creative venture. There are no guarantees there will be any or substantial returns, other than a personal undertaking by the Producer and Writer/Director that they will make every effort to make this venture a commercial success. There are risks associated with film production, including failure to deliver the film on schedule or on budget, or in a state and of content such that it may be publicly screened, or indeed at all.
What about liability?
Each Investor is a principal under the PIA and is an owner of a part of the copyright in the Film. Accordingly, an Investor may incur a proportionate liability, typically if the film is defamatory, invades privacy or otherwise infringes copyright or other rights of third parties.
Note however Oziinda Films Pty Ltd will be taking out normal Errors and Omissions insurance against such claims, but there is no guarantee that the insurance will cover all possible claims.
What other insurances will be in place?
Oziinda Films Pty Ltd obtained, maintained and kept current the following production insurance policies:
Public liability insurance to the value of $10million during the shooting of the Film;
Key person insurance in respect of the following key roles: the film director and the lead male actor.
Work Cover policy in respect of all employees;
Production Assets Insurance primarily the daily footage, which will be archived and separately stored in triplicate.
Errors and omissions (E & O) insurance in a form acceptable to the Film’s head distributor at such time as the distributor requires it. Errors and omissions insurance is not required until the Film has been completed.
Production was completed without any legal liabilities being incurred nor any claims being made.
