share pledges
Community Share Pledges
The Share Pledges was launched at a public hall meeting in Muker on 5th March 2024. The explanatory letter and return form can be accessed below. The initial business planning indicates that we need to raise an optimum of £320,000 from supporters of the Farmers Arms. With the support of the local and wider community and the significant trade from visitors we have every confidence that it can thrive.
The Board are currently producing the business case for the Government application that will also be available for the formal Community Share Offer. In advance we need to be able to demonstrate the financial support that is likely from the community and this is the reason for the Share Pledges.
All details are contained in the above letter and downloadable forms but some additional questions and answers can be found in the next section. The Share Pledge Online Form remains “live” and completed returns will continue to be added to the e-mail distribution list and given advanced notice of the formal Share Offer later in April. The Pledge form can be accessed HERE.
SHARE PLEDGE QUESTIONS & ANSWERS
How much do we need to raise?
The financial planning is based on community shares of around £320k and a £250k award from the Community Ownership Fund. Other sources of potential funding include donations and the Co-operatives UK Booster Fund.
How much can I pledge (per individual)?
Minimum investment of £250 and maximum investment is £32,000 (10% of the total shares).
Will my share value increase?
No. Shares in the Society can never be worth more than their face value.
Will I receive any interest/income?
At the discretion of the Board, a modest interest rate might be paid after the third year of trading.
Can I sell my shares?
No. Shares in the Society cannot be sold or transferred. The only way you can recover their value is to apply to the Society to withdraw the value of the shares you own.
Can I get the money back?
It is expected that withdrawals will not be possible for a period of 3 years and after that at the discretion of the Management Committee depending on whether or not sufficient funds are available in the business to be able to buy back your shares. Investors should take their own advice on risk.
What happens to my shares if I die?
You may nominate a person to whom your Shares are to be transferred on your death. If you do not nominate such a person, your Shares convert to a loan and that loan will be repaid (as part of your estate) on the same basis as the Society allows withdrawal of Shares.
Who will own and make decisions about the pub?
Anyone who purchases a share (regardless of the amount of shares) will have a vote. The members will appoint a committee who will manage the project.
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 will have an equal say to other members. You’ll be able to stand for and vote in the election of the management committee and be able to vote on any resolutions at members meetings.
What happens if you do purchase the pub, but it then fails?
In the unlikely event that the Society fails, all the business assets including the freehold of the building and land, would be sold and the proceeds of the sale (after paying any creditors) divided between the shareholders up to the value of their shares. Your liability as a member is limited to the value of your shares. You might receive the full value of your shares back or you might lose part or all of your investment.