HOW MUCH CAN I INVEST?
Investors can purchase a minimum of £250, 5 shares at £50 per share, up to a maximum of £25,000 in multiples of £50.
WHAT WILL HAPPEN WITH MY PERSONAL INFORMATION?
All members will be added to the Society’s member register, which will include their name and contact details. This is required in Society law to allow for member communication. The value of your shares will only be known to key members of the management committee ie. the office bearers.
CAN I BUY SHARES AS A COMPANY/CHARITY?
Companies, charities, and other societies may purchase shares and a named individual will be able to vote at members’ meetings on their behalf. They will not however qualify for Tax relief on the investment.
WHY SHOULD I INVEST?
Your financial investment will help us raise vital funds needed to purchase The Cross Inn. But more than that, the pub has always been about community and by being a member shareholder of the CBS you can help us shape the future of the pub to ensure it always works for the benefit of locals, and visitors.
CAN I CLAIM TAX RELIEF ON MY INVESTMENT?
SITR (Social Investment Tax Relief) is a scheme under which qualifying investments may be eligible for tax relief of up to 30% of the investment value subject to approval by HMRC. However, the SITR tax relief facility will end after the 5th of April 2023. Shares purchased on or before the 5th of April may be eligible for SITR tax relief subject to HMRC approval. This means that an investment of £1,000 will, in effect, only cost the investor £700.
IS THIS A GOOD INVESTMENT?
We have taken care to produce these documents with the help of expert advice from various support organisations. We believe based on our research that the business can be a success. However, you could stand to lose some or all your investment and if you have any doubts over whether or how much to invest, you should consult an independent financial advisor.
COULD I BE LIABLE FOR ANY DEBTS IF THE BUSINESS FAILS?
You could stand to lose some or all your investment, but members will not be liable for any costs beyond the value of their shares.
WHY FORM A COMMUNITY PUB, WHAT ARE THE ADVANTAGES OVER THE CROSS INN BEING PRIVATELY RUN?
As a community pub the Cross Inn will be renamed as Y Cross Cas-lai. It will be run by the community, for the community. Profits will be reinvested back into the business and other local projects that provide a wider community benefit. We can tailor the business model to ensure that it reflects the goals and aspirations of the community. We can protect this vital community asset into the future, ensuring it always works with the communities’ best interests at heart, and delivers tangible and long-lasting benefits.
WHO WILL MAKE DAY TO DAY DECISIONS ABOUT THE RUNNING OF THE PUB?
An experienced manager will be employed to oversee the day-to-day running of the pub. The manager will work with and report to the volunteer Management Committee who will set the goals and financial projections for the business.
HOW WAS THE PROPERTY VALUED?
We commissioned and independent survey of the property by a local independent Chartered Surveyor who reported on the condition of the property and provided a statement as the current market value. This was used as the basis for negotiations with the current owners.
WHAT HAPPENS TO THE PROFITS MADE BY THE SOCIETY?
All profits will either be reinvested into the business or will be donated to local community causes.
WHAT HAPPENS IF THE SOCIETY IS WOUND UP OR DISSOLVED?
All business’s assets would be sold, and the proceeds of the sale (after settling any debts) would be divided between the shareholders up to the value of their shares. Any excess value would be transferred to another community organisation having similar community benefit aims. This is known as an asset lock and is to prevent private gain if the organisation dissolves. If the asset value was lower than the share capital, shareholders would receive back less than their original investment.
WHEN CAN I WITHDRAW MY SHARES?
Share withdrawals will not be allowed within the first five years, for the Society to build its reserves, and to allow it to reach a stable financial footing, as well as to meet the requirements for social investment tax relief (investments must be held for a minimum of 3 years to qualify). Once this period has passed, we will consider withdrawals on a first come first served basis. Withdrawals will be entirely at the discretion of the management committee and only allowed where there are sufficient funds available.
WHAT HAPPENS TO MY SHARES IF I DIE?
Your shares will form part of your inheritance and can be transferred as part of your will. You may nominate on your share application form a person you wish to receive your shares in the event of your death. You may also elect to donate your shares to the Society.
WILL I RECEIVE INTEREST FROM MY SHARES?
We intend to pay 2% after year 3, 2.5% after year 4, and 3% after year 5, and hopefully, on an ongoing basis. All interest payments will be at the discretion of the management committee and dependent on the financial performance of the Society.
CAN MY SHARES GO UP IN VALUE?
No, community shares cannot increase in value. However, their value may decrease if the value of the society’s assets falls.
CAN I SELL MY SHARES TO SOMEBODY ELSE?
No, community shares are non-transferable. You can only withdraw your shares from the Society.
WHAT HAPPENS IF THE SHARE OFFER DOESN’T REACH ITS TARGET?
Our business plan has identified £200,000 as the minimum sum of money required through this share offer together with match funding from other sources to complete the purchase of The Cross Inn and provide working capital to get us started as a community business. If we are unable to reach that target, we would not be able to proceed with buying the pub. In the event we are close to the target, the management committee has the discretion to extend the offer period. If we are still not successful in raising the required funds, your investment would be returned in full.
WHAT RIGHTS DO I HAVE AS A MEMBER?
Community Benefit Societies are owned and controlled by their members on a principle of ‘one member one vote’. That means regardless of how much you invest, you’ll have an equal say to other members. You’ll be able to stand for and vote in the election of the management committee, who will make decisions about the running of the Society. You’ll also be able to vote on any resolutions at members meetings.
If you still have questions that you need answered, please contact us.