How does a share issue work?

Each share costs £10. Ownership of any number of shares will give the owner membership of Amberley Shop on the Common Limited (the Society).

Share ownership gives you the right to vote at the Annual General Meeting and to have a say in how the shop is run. All members/shareholders will have a single vote, irrespective of the number of shares owned.

Why do a share issue?

It offers local people an opportunity to contribute to a community shop and hub, with the expectation of receiving a social dividend rather than a financial one.

This social dividend may manifest itself in several different ways including:

• The reintroduction of a community hub

• Increased sustainability

• Greater social inclusion

• The availability of high quality and local produce in the village

  • ~  reducing car journeys to supermarkets

  • ~  offering support to producers and suppliers

• Making Amberley a more desirable place to live and improving property values
  

How many shares can I buy?

We encourage you to buy as many shares as you can to help us meet our fundraising target. Other community shop projects show average investment amounts of £100-£300* and that it is not unusual for investments to exceed £1,000. But even buying just one share will help the project.

*the Plunkett Foundation ‘A Better Form of Business’ 2019

Are there tax benefits?

We have been given advance assurance by HMRC that this share offer will qualify for the Social Investment Tax Relief scheme for any shares purchased before 5th April 2021. More details can be obtained here [INSERT LINK] but in essence this allows UK taxpayers to claim 30% tax relief on any investment made (i.e. buying £1000 worth of shares would attract income tax relief of £300). Shares must be held for a minimum of 3 years to qualify for the relief and the relief will only become available once the shop has been trading for four months.  Our apologies, but because of the administration involved, we will only be able to process claims for tax relief on share purchases of £100 or more . 

Who can become a shareholder?

Anyone aged 16 years or over can invest and become a member of the Society. You don’t need to be a resident of Amberley.

How do I know if the business will be viable?

This is always a hard question to answer but our research gives us confidence that the business will be viable.

• We believe that a well-run shop that meets the needs of the community will be supported by the community.

• Our overheads will be low, helped by only having to pay a nominal rent for our premises and through encouraging the participation of volunteers to help staff the business.

• Community owned shops across the UK have proved to be resilient. There are around 360 community shops operating across the UK and, according to the Plunkett Foundation’s ‘A Better Form of Business 2019’, the long-term survival rate is currently 94%.

The Management Committee has taken a cautious approach to revenues and costs and will continue to do so.

What happens to surplus revenues, if there are any?

The Society is a ‘not for profit’ body. Whenever we generate surplus revenues, these will be applied to causes within the local community. This process will be managed by an independent body.

It is important to note that there will be no dividends paid to shareholders, and interest will not be payable upon your investment.

However we hope that many of you will find reward in the social (as opposed to financial) dividend gained by the presence of the shop, post office and café enriching the community.

What if the business fails?

If the business fails any surplus and profits from the sale of assets (after paying creditors and repaying share capital) will be used to assist local causes in the village, under the direction of the Management Committee.

This does mean that you could potentially lose some or all of the value of your shares if the business did fail but, importantly, you would not have any further liability. However, we would not be launching this initiative unless we believed that the shop is viable.

Can I sell my shares or get my money back if I need it?

Under the rules of the Society, shares are not transferable, however in some circumstances and if funds permit, shares may be sold back to the Society at its discretion.

The shares in the Society are a special type of share (known as a Community Share).The only way to recover their value is to apply to the Society to withdraw your shares from the community venture itself.

To give the business the chance to build up reserves, the Society will not be able to accept applications for withdrawal for at least three years after trading begins. After this time, the Management Committee will consider withdrawal applications dependent on profits and reserves. Policies for withdrawal will be voted on by members at AGMs.