Frequently Asked Questions
HOW MUCH CAN I INVEST?
A key rule is that each Member has one vote, regardless of how many shares they own. Investors can purchase a minimum of £100, 1 share at £100 per share, up to a maximum of £50,000 in multiples of £100.
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.
WHY SHOULD I INVEST?
Your financial investment will help us raise vital funds needed to purchase Crymych Arms. But more than that, the pub has always been about community and by being a member shareholder of Crymych Arms 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.
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 Sub-committee, then the main CPD Crymych committee will be the legal Directors of the Society (several people sit on the 2 committees to ensure joint strategic development).
WHAT HAPPENS TO THE PROFITS MADE BY THE SOCIETY?
All profits will be reinvested into the business.
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?
Withdrawals must be funded from surpluses or new capital raised from members. You will need to give at least three months’ notice of your wish to withdraw; however, it is important to note that we do not anticipate being able to allow any withdrawals before year 5. When it is possible to consider share repurchase, the Committee will set out appropriate criteria and annual limits. It is important to understand that the Committee may suspend withdrawals depending on the long-term interests of the Society, the need to maintain adequate reserves, and the commitment to the community.
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?
After completion of four full years of trading, and if the business is running successfully and has sufficient surpluses, we hope to be able to pay annual interest on members' shares of a maximum 3%. The Steering Group will each year submit a recommendation regarding interest payments on shares for the approval of the Annual Members’ Meeting.
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 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.
