Key information about your shares (from our share offer documents)
The nature of the investment
This is a long term investment. It is unlike investment in a for profit enterprise where the investor seeks to share in profits through dividends and make capital gains from an increase in the value of shares held which are freely marketable.
• The shares in a Community Benefit Society are not transferable, and the value of any shares cannot
increase beyond their nominal £1 value and may be reduced if liabilities exceed assets.
• Shares cannot be sold. Shares can be withdrawn by giving 3 months notice of withdrawal to the Society. This cannot take effect until 1 year has elapsed from the date the Society begins trading. Withdrawal will be at the discretion of the directors who will judge if the Society is trading profitably and has adequate cash reserves to fund withdrawal.
• The Society cannot be sold for the benefit of its member shareholders, and there is a statutory
Payment of Interest
• Provision is made in the Rules for payment of interest on shares at rates sufficient to attract the
required capital. The rate will be determined by members each year at the annual general meeting.
The directors anticipate that the project will return up to 4% to investor-members.
• This investment should be considered as an opportunity to contribute financially to the community with the expectation of a social dividend rather than just a financial reward.
• Members have the option to waive part or all of their interest payment or assign it to a particular project.
Each member of the Cooperative will have one vote regardless of the size and value of their shareholding. The sovereign body of the Cooperative is the general meeting, which will elect a Board of Directors to manage the Cooperative.