We are Incorporated!
The Thorold Arms Community Benefit Society (CBS) Limited has been registered.
The Financial Conduct Authority (FCA) have written to us, via The Plunkett Foundation, to say that our application to form a Community Benefit Society was accepted and registered number 7295 on the 11th of March 2016.
Incorporated is probably the wrong word because, although similar to a company, we are in fact a Community Benefit Society – a type of co-operative. However we can now open a bank account and will soon be able to accept the money kindly donated by the Plunkett Foundation and Marston Parish Council. So we will shortly be able to pay for the work we’ve had done.
The Thorold Arms (CBS) Limited is a society governed by the set of rules published here.
In many ways the Society behaves like a limited company with: i) a management committee, much like a board of directors, who manage business day to day and; ii) shareholders who control the committee and policy at an Annual General Meeting or Special Meetings as required.
The Society has limited liability but the control aspect is more community based, with each shareholder having 1 vote regardless of how many shares they buy.
The Society can pay interest rather than dividends to its shareholders and the share value remains constant and shares cannot be traded although they can be bought back by the Society. Investors should be able to claim tax back on their investment, once approval has been granted by HMRC. The rate of tax rebate is likely to be 30%.
Shareholders cannot request repayment of their investment for at least 3 years and the management committee can control the rate of repayment to ensure that the business can endure the payments.