WHAT IS THE SHARE OFFER?
The Share Offer is intended to provide local people and organisations with the opportunity to support and contribute financially to our community shop venture. This investment is expected to generate a "social dividend" rather than a financial return. The social dividend, the result of having a local shop in the village again, will provide convenience, accessibility as well as a meeting place in the community. On top of the social dividend, if the finances of the Society permit, the Management Committee may recommend paying interest to members in the future. In addition, under the Government's Seed Enterprise Investment Scheme (SEIS), the purchase of shares may be eligible for income tax relief at 50% of the value purchased.
WHO CAN BUY SHARES?
Anyone over the age of 16 can buy shares and each share costs £10. Buying one share will entitle you to membership and a vote at the annual member meeting. Membership will operate on the basis of one member one vote, irrespective of the number of shares held. By investing in Lower Broadheath Community Shop Ltd you can help secure a vital resource for our village and all who live here.
THE SHARE OFFER
WHAT GUARANTEES DO I HAVE FOR MY INVESTMENT?
The shares are issued by a corporate body, which means that no further liability can fall on a shareholder, so even if the business fails you cannot be asked for more money. These shares are NOT the same as the more familiar commercial share investment where the investor seeks to share in the financial profits of the company by way of dividend or rising share price. The business cannot be sold for the benefit of its members shareholders. Future profits not needed for the development of the business can only be used for the benefit of the community of Lower Broadheath. In the event that the business ceases trading, any surplus (after paying creditors and repaying share capital) must be used for the benefit of the community.
WHAT HAPPENS IF WE DON'T RAISE ENOUGH MONEY?
If we fail to achieve our target for the present share offering, we would continue to search for funding from other sources while reserving the right to extend the share closing date to give more time. In the event of failing to secure the total funding necessary by 30 June 2019 the community shop initiative will be deemed to have failed and shareholders will be given the option to withdraw their investment for a full refund.
WHAT INVESTMENT DO WE NEED IN ORDER TO OPEN?
We aim to raise £25,000 from the community. Part of this sum is expected to be spent on obtaining the necessart permissions, purchasing a portable cabin, locating it and connecting it to the necessary services. We also need to have cash to pay to fit it out with the necessary shelving and equipment such as refrigerators and freezers, and the buy initial stock. The investment by the community is also essential to unlock the grant funding we need to meet our overall target. The total start up cost in the business plan is estimated at £75,000 and we are confident that we can secure the balance by way of grants and sponsorship, with loans as a last resort.
WHAT IS THE SEIS TAX RELIEF SCHEME?
We have received advance assurance from HMRC that our investment will meet the criteria for the Seed Enterprise Investment Scheme programme which we anticipate will enable anyone who pays enough UK income tax and invests between £100 - £2,500 to gain 50% income tax relief on their investment. It will be the responsibility of each investor to make their own enquiries and to satisfy themselves as to their eligibility for such tax relief.