FAQs about the shares offer
How can I invest?
We are running this share offer through The Exchange website. Money will be paid into our account at the point you click to invest and then it will be held with Stripe (who manage online payments made on our website). If the share offer is successful, it will then be paid to us, and you will become an owner of, and investor in, The Exchange. If we’re not successful, the money will be paid back to you by Stripe.
What is the minimum and maximum investment?
The minimum investment is £20, and the maximum is £15,000.
Why would I buy a share for £100 if I can buy one for £20?
The share value is £100 and the subsidised shares are limited in number. If you can afford £100 and are happy to invest that amount this means a subsidised share remains available for someone who can’t. It is a way for you to ensure that ownership of The Exchange is available to everyone regardless of financial circumstances.
Who can invest?
Anyone over the age of 16 can invest (but only people aged 18 or above can serve as directors).
Can organisations and businesses subscribe for Community Shares?
Yes. A representative of that organisation will need to become a Member of the society as nominee for their organisation/business.
Can people club together to buy shares?
Yes, but as with organisations, you’ll have to nominate a Member of your group to be the named shareholder in our share register.
Will I get a Share Certificate?
Everyone who invests will receive a community share certificate.
What if the society isn’t financially successful enough to survive?
If we did become insolvent, the ability of investors to recoup the funds they have invested would depend on firstly the value we (or the appointed insolvency practitioners) could get for the assets of the society and secondly, the value of our debts at that point.
In the event of our insolvency or orderly winding-up, the proceeds from the sale of those assets and our cash would firstly pay off all our creditors, and if there were any funds left at that point, would be used to pay back shareholders as much of their investment as they have outstanding as possible, on a pro-rata basis.
As we are a charity, should there be any surplus after returning funds to investors this would have to be given to another charity or to enable charitable objects. This cannot be changed by Members and is enforced by charity law.
Will I be liable for any debts, or required to invest any more?
No. Your liability is limited, which means that the worse-case scenario would see your investment wiped out, but there will never be any requirement for you to pay more money to us or any of our creditors.
What happens if I didn’t get all my investment back?
Although we are registered as a society with The Financial Conduct Authority (FCA), the sale of withdrawable shares in the society is not regulated by the FCA. Like many investments, these 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. If you are considering investing a significant amount, then you may wish to seek independent financial advice before doing so.
Investors who have claimed tax relief would also be eligible to claim loss relief against their tax liability for the difference between what they invested less any tax relief already claimed and what was returned to them.
Can my investment be gift aided?
Yes, but as Gift Aid is only eligible for donations, you will need to tell us you want to waive your right to ever have your funds returned to you or have interest paid on them.
Can I sell my shares?
No. This investment is in withdrawable share capital which cannot be transferred, sold or given to anyone else, except on your death. You can tell us in advance whom you wish to transfer your investment to upon your death, and we can transfer the first £5,000 of your investment to them; any investment above £5,000 requires your beneficiary to be explicitly named in your will. If you do not nominate anyone, then the Board will rely on the instructions given by your executors.
Can shares increase in value?
Shares cannot rise in value, so there will never be a capital gain. They may be reduced in value if our auditors instruct us to do so if they believe that the value of our assets has fallen.
Who owns the Old Library building?
Bexley Council are the freeholders of the building but The Exchange have secured a 50 year lease, putting you in charge of the building until at least 2069.
What will you do with my personal details and data?
Your personal details as submitted on the application form will be held by the society and used in accordance with the provisions of the rules and of the 2014 Co-operative and Community Benefit Societies Act. Only Members can inspect the Members’ register and view Members’ names and addresses (but not how much they have invested) but the society will not share, sell or provide your details to any other individual or organisation and will ensure compliance with the GPDR regulation in accordance with its responsibility as a data controller.