Community Shares Introduction Community Shares is one way for Co-operative or Community Benefit Societies to raise money and recruit members. Community shares refers to Societies that have more than 20 members and have raised more than £10,000 in shares. Every shareholder is a member with one vote. Shares are withdrawable share capital, and not tradeable on the stock exchange. Since 2009, there has been huge growth in community shares Societies. From 2009-12, over 100 Societies made share offers, raising £15.2m from over 15,000 members. Community shares is a proven model for Co-operative and Community Benefit Societies. The Rochdale Pioneers used shares’ to start their shop in 1844. The principles they ‘community established are internationally recognised by the worldwide co-operative movement. Community shares are not possible for Companies Limited by Guarantee, including Community Interest Companies. Share offers to the public are very expensive for Companies Limited by Shares, due to regulation under Financial Services and Marketing Act 2000. Community Shares is one way that Co-operative or Community Benefit Societies can recruit and engage members, and raise finance to start up or grow. Many Societies raise finance only through grants, credit, sweat equity and loans. These sources of finance can be leveraged by a community shares offer. Successful Community Shares Figure with thanks to Co-operative UK’s Community Shares Unit A successful community shares issue needs four key elements:
Community Shares Introduction Community Shares is one way for Co-operative or Community Benefit Societies to raise money and recruit members. Community shares refers to Societies that have more than 20 members and have raised more than £10,000 in shares. Every shareholder is a member with one vote. Shares are withdrawable share capital, and not tradeable on the stock exchange. Since 2009, there has been huge growth in community shares Societies. From 2009-12, over 100 Societies made share offers, raising £15.2m from over 15,000 members. Community shares is a proven model for Co-operative and Community Benefit Societies. The Rochdale Pioneers used ‘community shares’ to start their shop in 1844. The principles they established are internationally recognised by the worldwide co-operative movement. Community shares are not possible for Companies Limited by Guarantee, including Community Interest Companies. Share offers to the public are very expensive for Companies Limited by Shares, due to regulation under Financial Services and Marketing Act 2000. Community Shares is one way that Co-operative or Community Benefit Societies can recruit and engage members, and raise finance to start up or grow. Many Societies raise finance only through grants, credit, sweat equity and loans. These sources of finance can be leveraged by a community shares offer. Successful Community Shares Figure with thanks to Co-operative UK’s Community Shares Unit A successful community shares issue needs four key elements:
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