Farfield Mill

£300,000

The Society aims to be in a position to pay interest on Community Shares after three years of increased trade due to new facilities and investment, but only if it is sensible and prudent to do so. It won’t pay any interest on these shares until the end of the financial year 2020-21.

The forecast for the next five years is based on a 1% interest rate per year payable from April 2021 and if the society performs as well as forecast then you can expect a 1% payment per year. After five years, if and only if it is prudent to do so, Farfield Mill will raise the interest rate to 3% per year. It will never pay above 3% interest.

• Read more about the project finances in the Financial Performance section.

Farfield Mill provides space for local artists and craftspeople at affordable rents, clusters artists together to increase their potential customers, contributes about £150,000 a year to the creative economy of the Sedbergh Area and has consistently provided employment in the area for over 200 years.

• Read more about the project social impact in the Social performance section.

£50

You must order a minimum of 50 shares.

£30,000

The Society is open to requests to invest from community businesses, public bodies and other societies for more than this maximum.

This is not a donation but an investment - a long-term investment in the future of Farfield and it is the long-term nature of this investment that will make the Society stable.

This investment is a particular type of community investment that is only open to societies. It is different to traditional company share capital in that you can’t sell the shares on to another person or organisation. If you wish to get money back for your shares you must sell them back to the society. They are called withdrawable shares.

Farfield Mill will not allow any withdrawal of shares before April 2021.

After April 2021 it is planned to permit share withdrawal up to maximum of 10% of the original share capital (i.e. between £30,000 and £36,500 pa) in any one year. In exceptional circumstances and if it is prudent to do so the board reserves the right to allow more withdrawal than the maximum in a particular year.

However a Community Benefit Society is restricted so it can only allow withdrawal when it is sensible and prudent to do so. The board therefore reserves the right to suspend withdrawal at its sole discretion.

When withdrawal is allowed, members will need to give three months’ notice to withdraw their shares.

As you cannot trade these shares they will not increase in value. The amount of shares you own will only increase by the interest received on those shares. Your shares may however decrease in value. The rules of the society allow for a reduction in members’ share value in the circumstances that auditors certify that liabilities plus share capital is greater than assets.

As with all share investment your shares are at risk. This means you may lose all or some of your investment. Please only invest in this society what you could afford to lose.

Potential investors should know about the risks as well as the benefits of investment in community shares.

• An investment in community shares is an investment in a trading business, not a loan or a deposit, and the rates of return are not guaranteed. This investment should be considered as medium to long term. Your shares may not be readily convertible to cash should you need to withdraw them.
• Like many investments, community shares are at risk and you could lose some or all of the money you invest. Unlike deposits with high street banks, community shares are not covered by the Financial Services Compensation Scheme, nor is there any right of complaint to the Financial Ombudsman Service. Any dispute may be the subject of arbitration as set out in the Society Rules.
• As a member and shareholder of Farfield Mill you could, if Farfield Mill is unable to meet its debts and other liabilities, lose some or all of your investment held in shares. However, your liability is limited to the amount that you have paid for your shares.
• Your investment in your share account may receive interest but does not enjoy any capital growth. It is primarily to support your community rather than make a profit for investors. As a society, the maximum return offered to investors by way of interest will always be limited.

The details of your investment are recorded on your share certificate and by the Society.

Share certificates are issued directly by the society, not by Ethex.

The shares you buy will make you a member of the society, with an equal vote regardless of your shareholding. Your involvement thereafter can be to serve on the Board of Directors, become a part of the Member Forum, volunteer your skills, get involved in (or propose a new) project, or simply support and attend Farfield Mill's projects and activities.

Farfield Mill is open to anyone who wishes to join it, supports the aims of Farfield Mill, agrees to be held to the rules of Farfield Mill, has bought the minimum shareholding of £50, is over 16 and has applied. The directors reserve the right to refuse any application to join. They are also open to any corporate body that wishes to join as long as they too support the aims of Farfield and have brought the minimum shareholding.

The directors do not need to accept your application for shares. They reserve the right to refuse any application. They also reserve the right to only accept part of your application. If the directors refuse all or part of your application for shares all your monies will be returned in full without administration charges.

There are two options.

1. For the first £5,000 of share capital you can nominate a beneficiary. These shares will be transferred to your named beneficiary upon your death. They will not form part of your estate and will not go through probate in the normal way. The Society is asking that you consider naming Farfield Mill as your beneficiary. You can always change your named beneficiary at a later date. Any shares passed on in this way do not suffer inheritance tax.

2. If you don't nominate a beneficiary, or in either case for any share capital held above the first £5,000, your shares will become part of your estate. This means they will be dealt with by your will in the normal fashion. If you hold more than £5,000 worth of shares in Farfield Mill the Society ask that you consider leaving your shares to Farfield Mill in your will. Unfortunately shares in Farfield Mill that pass through your estate will not qualify for business relief for inheritance tax purposes.