Buying Shares in The Bromley Cross Community Pub
SHARES ARE STILL AVAILABLE TO BUY!
Share issues are designed to give you the opportunity to contribute financially, on a long-term basis, to the continued success of the Great Bromley Cross Pub. We expect most shareholders to come from the local community but welcome contributors from further afield. The pub will operate as a community business with ongoing costs covered by a trading surplus.
Shares in The Great Bromley Cross Pub Community Benefit Society Ltd (CBS) are still available for purchase. Shares are £50 each and were set at a minimum investment of five shares (i.e. £250) However, at the 12/1/2025 AGM this rule was changed to a minimum of one £50 Share.
Any investor must be 16 years of age or older. The tax relief for investors (available at the creation of CBS) is no longer available.
It is important to note that the value of the shares will not increase. The only financial benefit for shareholders is the possibility of interest payments. Interest, if any, is payable on a shareholding at an interest rate proposed by Management Committee (ManCom) based on the performance of CBS and put to a vote at the AGM. ManCom will consider making interest payments as soon as they think it viable. Interest payments cannot by law exceed 2% above the Bank of England Base Rate. It is each shareholder’s responsibility to declare any such receipt of interest to HMRC; if appropriate.
Shares are not transferable (except on death or bankruptcy) and cannot be traded. They can only be sold back to CBS. Any applications for sale/redemption must be made by providing three months’ notice to ManCom. Shares cannot be redeemed until they have been held for a minimum period of three years and then only at ManCom’s sole discretion. The amount that could be withdrawn by all shareholders in any one financial year is limited to 10% of the then current total value of shares in issue. Withdrawals can only be funded from trading surpluses or new share capital. ManCom will consider any withdrawal request but has authority, if thought necessary, to refuse any or all of them.
Should The Great Bromley Cross itself be sold, shareholders will be repaid their investment from the sale proceeds, after repayment of all other debts. Any resulting surplus would then be paid to community projects or held in trust until such monies are needed by the community. As with any such investment there is a risk that the value of your shares may fall. To help mitigate this CBS owns a property and land so it is difficult to see how an investment would ever be worthless.
Also, as an investor your liability is restricted to the value of your shares. In the very unlikely event that the business fails it appears very likely that you will have no other personal liability.
Shares can be purchased by completing the Share Application Form (link below) subject to CBS Rule 3.4 and sending it to the Secretary at The Great Bromley Cross. Please ensure that you have read the Model Rules of our Community Benefit Society before considering purchasing any shares.
Before deciding to invest you may wish to seek independent advice.