SHARES ARE STILL AVAILABLE TO BUY!
Shares in the Great Bromley Cross Pub Community Benefit Society Ltd (the CBS) are still available for purchase. Shares are £50 each and there’s a minimum investment of 5 shares (i.e. £250). Investors must be 16 years of age or older. Sadly, the tax relief for investors available at the creation of the 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 the interest payments. Interest is payable on shareholdings at an interest rate proposed by the Management Committee based on the performance of the Society and put to a vote at the AGM. The Management Committee will endeavour to make interest payments as soon as viable. Interest payments cannot by law exceed 2% above the Bank of England Base Rate. It is each shareholder’s responsibility to declare such earnings to HMRC, if appropriate.
The shares are not transferable (except on death or bankruptcy) and cannot be traded; they can only be sold back to the CBS. Applications for redemptions must be made by providing three months’ notice to the Management Committee. Shares cannot be redeemed until they have been held for a minimum period of 3 years, and then only at the discretion of the Management Committee. The amount available to withdraw by shareholders in any one financial year will be limited to 10% of the current total value of shares issued. Withdrawals will be funded from trading surpluses or new share capital. The Management Committee will endeavour to meet all withdrawal requests but has the authority, if necessary, to refuse a withdrawal request if it endangers the business.
Should The Great Bromley Cross ever be sold, the shareholders would be repaid their investment from the proceeds of the sale, after the repayment of any debts. Any surplus would be paid into 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 mitigate this, the CBS will own a property and land, and it is difficult to see how this will ever be worthless. As an investor, your liability is restricted to the value of your shares. In the very unlikely event that the business fails, you would have no other liability.
Shares can be purchased by completing the Share Application Form (link below) and sending it to the Manager at The Great Bromley Cross. Please ensure that you have read the Model Rules of our Community Benefit Society before considering purchasing shares!
Model Rules of the Community Benefit Society