Membership
Membership of The Society requires the purchase of one or more shares and is not risk
free. However, it gives you a say in the running of The Society as well as demonstrating a
commitment to the community and our High Street.
Society Membership
The Society is owned by its Members. You can become a Member of the Society by buying one or more shares. Each member has only one vote at the AGM, even if they own more than one share. The cost of each share is £50.
Shares are not transferrable and can only ever be redeemed at par (in our case £50) i.e. they can never be worth more than what was paid for them. In certain circumstances interest might be payable on the shares you hold. Please read carefully the Terms of Membership set out below before deciding whether or not you wish to become a Member of the Society.
Becoming a Member is supporting your community and your High Street.
Terms of Membership
Membership Rules
The Rules of Cricklade Development Foundation Limited define your rights and responsibilities as a member. We strongly encourage you to read them, as they explain in detail how the Society is governed.
Who can join
Membership is open to:
• Individuals aged 16 or over
• Organisations.
Joint applications are not permitted.
Membership Shares
To become a member, you must complete an application form and purchase at least one share.
• Cost per share: £50
• Maximum investment: 2,000 shares (£100,000)
• Voting rights: Regardless of how many shares you hold, each member has one vote at the Annual General Meeting.
Please note: The value of shares will not increase. The only potential financial return is through interest payments.
Transfer & Withdrawal of Shares
• Shares cannot be transferred (except upon death or bankruptcy of a member).
• Shares cannot be sold.
• To recover the value of your shares, you must give notice of withdrawal.
• Withdrawals are only permitted after two years from the date of entry into the Share Register, and only:
o At the discretion of the Society
o If sufficient financial reserves exist
Withdrawals are funded from trading surpluses or new share capital. The Society may refuse withdrawals if they would compromise its financial stability.
A copy of our Share Withdrawal Policy is available on request.
Interest Payments on Shares
Interest is only paid to members holding 50 or more shares.
• Accrual: Interest begins accruing from the qualifying date (the date that 50 or more shares are first held).
• Payment date: Interest vests on 30th September each year and is paid soon after the financial year-end.
• Rate: Set by the Directors based on financial performance, and paid gross.
• Taxation: Members are responsible for declaring interest to HMRC, and we are required to report interest payments to HMRC.
Interest Rate
Subject to financial performance, the Society aims to pay interest at a rate of:
• Not less than 2%
• Not more than 5%
The rate is regularly reviewed and may change at the discretion of the Directors.
The Risks
You may lose all or part of your investment
This would occur if the Society's liabilities exceeded its assets. For example, if the Society has no rental income but still needs to repay loans and later sells the property with no surplus remaining after creditor payments, your share capital may not be repaid.
However, this is considered unlikely because:
• The Society will obtain professional advice (e.g., valuations, surveys, legal counsel) before making property purchases.
• The Society does not operate commercial businesses but simply owns and leases property, reducing operational risk.
Still, please consider this risk carefully when deciding to invest.
You may not be able to withdraw your shares
Withdrawals:
• Are only permitted after two years
• Are subject to the Society’s discretion
• May be limited in any given year based on available funds
A Share Withdrawal Policy is in place to manage this. Directors must obtain member approval at a General Meeting to withdraw their own shares.
You may receive no returns
There is a possibility, though unlikely, that no interest will be paid in a given year. This could happen if there is insufficient rental income or extended vacancy/void periods.
Consumer Protection
Membership shares are not regulated under the Financial Services and Markets Act 2000. This means:
• There is no right of complaint to the Financial Ombudsman.
• Your investment is not protected by a deposit guarantee scheme.
Cricklade Development Foundation Limited is registered with (but not authorised by) the Financial Conduct Authority. Please consider this carefully and seek independent financial advice if needed.
Status Disclosure
Cricklade Development Foundation Limited
A Community Benefit Society
Registered under the Co-operative and Community Benefit Societies Act 2014
Registration Number: 7847
Registered Office: Cricklade Town Hall, Cricklade SN6 6AE