If the share offer failed to hit the target investors would have their funds returned. Bristol Live Arts CIC would continue to run Exchange, but would need to think long and hard about whether it’s worth continuing running the venue.
If the trading performance is worse than expected the current directors will draw on their 12 years experience of running venues and successful negotiation of the financial downturn of 2008 while at The Croft.
If the society became insolvent, the society’s assets would be sold and the proceeds used to pay debts. Any funds remaining would be distributed pro-rata to shareholders up to the level of their investment and no more. Investors would not receive all of their invested funds back, but would be eligible to claim the loss against their tax return.
There may be an unexpected need that arises for major capital expenditures in investment projects. Exchange Bristol maintains proper insurance cover maintained at all times and adequate cash reserves are retained to cover contingencies. As a last resort assets can be liquidated or further funds raised.