Chitterne Community Benefit Society

Have we raised sufficient funds?

Current pledged funding is around £185/190k, with the funding minimum at £200k as per the business plan in the prospectus to cover purchase price, administrative fees, and work to property. The stretch target of £250k is the ideal funding level to cover work required but also reduce our loan required – the more we raise, the less we borrow and have to pay back.

What is the update regarding the purchase process with the owner?

An offer has been made in writing to the owners agent and accepted in principle. A structural survey has been booked and is due to take place in the next two weeks. Subject to receiving a satisfactory survey, a conveyance solicitor has been sourced to commence the purchase process.

When can we expect the pub to be open?

We originally hoped to achieve an opening by late summer, but fundraising has taken longer than anticipated, and as outlined in Q1, we are marginally short of our low target. The programme is dependent on pledges received converting to share monies deposited in the CBS account by July 5th.

What happens if the purchase does not complete?

All deposited money will be returned less any administrative costs incurred such as survey, legal etc, as soon as possible. Any costs incurred will be shared across all shareholders.

Can I invest on behalf of my children or grandchildren?

Yes as long as they are over 18 years of age you can buy shares on their behalf. As they will be the legal named shareholder in their own right they will have to consent to becoming a shareholder.

What happens to my shares if I die?

Your shares will form part of your inheritance and can be transferred under the terms of your will. Applications for withdrawal of shares will be considered by the CCPG committee and subject to availability of funds. Upon receipt of the share application form you will be asked to nominate a benificiary.

What happens if the funding target is reached?

If the funding target is reached during the initial share offering timescale, we may still accept further applications if it means we can reduce our financial borrowing. The scheme will also remain open to any newcomers to the village.

Can I sell my shares?

No. The legislation for CBS is very clear that shares cannot be traded or transferred. The statutory asset lock is designed to ensure that any increase in share value is only used for community benefit.

When can I withdraw any shares?

As per CBS rules, withdrawals may not be considered until after 5 years trading , and will be subject to appropriate funds available. Further detail is available in the full CBS rules.

Will my personal information be secure and kept confidential?

Personal data will be used solely for the purpose of maintaining a register of members as required by the Society, and for communication with members. No personal information will be shared with third party companies or organisations.

When will I receive my interest payments?

AS per the CBS rules, any interest payments in your shareholding will be considered by the CBS committee after year 3, and subject to sufficient funding. Interest payments will be reviewed annually therafter.

What is the situation with the pub sewage system?

We are currently obtaining quotes for the work required and will take advice from our conveyance solicitor as to the current Environment Agency regulations that may apply to new owners.

How will we run some of the “Hub” services?

Volunteers will be sought to operate the hub services in conjunction with the Tenant. These hub services include a prescription dispenser – agreed with the local GP practice – and a small shop, again verbally agreed to be supplied by a local operator but staffed by volunteers.

What is the progress regarding a search for a Tenant?

Initial searches are underway but until the pub is bought and owned by the CBS this hinders any discussion with potential tenants.