We are offering membership at a minimum of £5. This enables you to buy a minimum of five £1 membership shares in Caistor and District Community Trust Limited, which gives you a say in its activities, with full voting rights at our AGM and the opportunity to join the board. All members have one vote.
As a member, you will also be given the opportunity at a future date to participate in a larger capital raising community share offering to invest in the 2-4 Market Place regeneration project. A prospectus will be issued in due course with details of how you can invest in addition to your minimum £5 membership share. There is no obligation on members to add to their minimum £5 membership investment if they do not wish to do so. Full details of that Caistor and District Community Trust Ltd community share offer will be published late 2018/early 2019.
Community shares provides a mechanism to bridge the gap between under-capitalisation and ownership of social enterprise. This term refers to non-transferable withdrawable share capital; a form of share capital unique to co-operative and community benefit society legislation. This type of share capital can only be issued by co-operative societies and community benefit societies, including charitable community benefit societies and has some unique characteristics:
1.This type of share capital cannot be transferred between people. Instead, the society allows shareholders to withdraw their share capital, subject to terms and conditions that protect the society’s financial security.
2.The value of shares is fixed and not subject to speculation, although some societies have the power to reduce share values if the society is experiencing financial difficulties.
3.Shareholders have only one vote, regardless of the size of their shareholding, so the society is democratic. There is also a limit on personal shareholdings, currently up to £100,000 (£20,000 in Northern Ireland).
4.There is also a limit on the interest paid on share capital, based on the principle that interest should be no more than is sufficient to attract investment.
5.Finally, the society is subject to an asset lock, which prevents the society being sold and the proceeds of the sale being distributed amongst shareholders. This removes the possibility of capital appreciation and the scope for investor speculation.