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.