What is the difference between a shareholder and a member?

None

Why should I become a shareholder?

If you want to help Oakley Village Stores to become a reality and to have a say in how it is run, you should invest. The more we can raise from shareholders, the less funding we will need to seek from grant funding sources or loans which both improves the chances of the project proceeding and the chances of the Shop being a success.

How much should I invest?

The minimum investment is £25 (1 share) but you can invest up to £5,000 (200 shares). We need to raise as much as possible through shareholdings and hope people will be generous to help us do that, but you should not invest more than you can afford to. Whilst we hope it will be possible if the Shop is successful, there is no absolute guarantee that you will be able to withdraw your investment in the future. If you cannot, or do not wish to, invest the minimum amount you can help by making a donation. In this case you would not be a shareholder and would not participate in the decisions relating to the Shop.

What if I have made an investment and then decide I want to invest some more?

Provided that the share issue is still running please complete the form and transmit the funds in the same way. The two will be added together to make your total investment. You will only receive one vote no matter how many times or how much you invest, or how many shares you own. If the share issue is closed and you wish to invest further funds, please contact us via the email address or phone number provided to discuss how that might best be achieved.

Are there any restrictions on becoming a member?

You must be 16 or over and you must purchase at least one share of £25.

What voting rights will I have?

As a Community Benefit Society, the rule is one member, one vote, when a matter is voted upon regardless of how many shares are held.

What happens to my shares when I die?

They will become part of your estate and can be passed on accordingly.

Can I buy shares in joint names?

No. Instead, couples or groups can make individual applications and benefit from separate voting rights.

Can companies or other bodies corporate buy shares

Yes, but they must do so through a nominated individual named on the application form.

Can I apply online?

No, not currently.

Can I cash in my shares?

To enable the business to build up sufficient reserves, it will be at least three years before you can apply to withdraw shares. After that, shares can be withdrawn in line with the Model Rules with the approval of the Management Committee, but you must note that this will only be given if the Management Committee is satisfied that there are sufficient profits and reserves in the business for it to provide its community services for the foreseeable future. You must retain the minimum shareholding if you wish to remain a member.

Can I sell my shares?

No. The only way you can recover their value is to withdraw them (i.e., sell them back to the CBS (except on death or bankruptcy)).

What will I get as a shareholder?

Once the share offer has successfully closed, you will receive a share certificate stating the amount you have invested. Most importantly, you will have a voice in the strategic direction and running of the Shop and any other ventures the CBS takes on through voting rights at the AGM or any Special Meetings. You will also get to vote to elect and can stand for the Management Committee. If finances allow, annual interest may be payable on your investment in future years. The Management Committee will make a recommendation, but it will be for members to decide each year whether interest should be paid and at what rate (subject to the cap set out in the Model Rules).

Are there any circumstances in which I will be expected to pay any more money because I hold shares?

No. Once you have paid for your shares, you cannot be forced to pay any more even if the business fails.

Who will make the decisions about the Shop?

Strategic or key decisions or resolutions will be voted on by the members. This does not mean all decisions. Day to day decisions will be the responsibility of the shop manager and other management decisions and recommendations to shareholders will be made by the Management Committee who will manage the Shop on behalf of the members. However, certain key decisions will be voted on by the members at AGMs or Special Meetings (which can be called by a group of members) and members will be able to put forward their views at said meetings.

Will my investment increase in value?

No. As stated above, interest may be payable in future years if the shop is a success, but you should look at this as primarily an investment in the village and community to deliver a needed facility.

What happens if the business fails?

Once liabilities have been met, members’ share capital would be refunded according to the Model Rules. However, it is important to note that the CBS is subject to an “asset lock.” This is necessary to qualify for a number of the key exemptions, reliefs and grants and removes an incentive for members to wind-up the CBS in future to capitalise on the assets. This means that if the business fails or is wound up, any residual assets, after members’ share capital has been refunded, must be transferred to another prescribed community benefit society or other community or charitable organisation. In the case of the Shop, it is currently proposed that the building itself would be leased from the Parish Council and would therefore revert to the Parish Council if no longer required for the Shop, to ensure that it is put to beneficial community use.

What happens if insufficient funds are raised to proceed with the project?

In the unlikely event that by 31st August 2022 we have not raised enough funds to commence the project (£50,000) then the Management Committee will offer members a refund of their investment less incidental costs that have been incurred, if any.

Can anyone use the Shop or is it restricted to members/shareholders?

The Shop will operate as any other village shop as such will not be restricted to members/shareholders. We are keen to see the Shop thrive and will welcome everybody. There will, however, be events, promotions and offers/discounts which will be exclusive to members to thank you for your investment.