The Co-op intends to commence repaying share capital to members in March 2020 and to make repayments of capital annually thereafter. Members do not have the right to withdraw share capital but the Board has the power to permit shares to be withdrawn. The Co-op currently envisages that it will repay up to about £200,000 of its share capital in March 2020 since it is aware that some members who invested as early as 2014 wish to be repaid (particularly in probate cases and for change of personal circumstances). The Co-op envisages it will redeem about a further 5% of its shares each year thereafter until all capital is fully repaid. Members who wished to redeem their shares would be given priority, and any further shares redeemed would be redeemed in proportion to members’ shareholdings. All redemptions would be at the par value of £1. The Co-op will fund the repayment of shares principally from its cash reserves (arising largely as a result of the depreciation charged in the accounts), but also, if appropriate, by making an issue of new shares to existing members and others who wish to invest, or increase their investment, in the Co-op.
The Co-op has budgeted to redeem £200,000 of shares in March 2020 but will be consulting members to ascertain whether they wish to redeem that amount. If members wish to redeem less than £200,000 of shares then the cash saved will be invested in new solar arrays and the amount the Co-op needs to raise under this share offer will be reduced.
The intention is to redeem all share capital within 21 years after the commissioning of the last solar panels funded by this offer.
Any such redemption is dependent on the performance of the business. The effect of redeeming share capital is to reduce the amount paid out in interest and to increase the payment to schools.