Buying Shares in The Bromley Cross Inn Community Pub
Shares are Still Available To Buy
Shares in the Great Bromley Cross Pub Community Benefit Society Ltd (the CBS) are still available for purchase. Shares are £50 each and there’s a minimum investment of 5 shares (i.e. £250). Investors must be 16 years of age or older. Sadly, the tax relief for investors available at the creation of the CBS is no longer available.
It is important to note that the value of the shares will not increase. The only financial benefit for shareholders is the possibility of the interest payments. Interest is payable on shareholdings at an interest rate proposed by the Management Committee based on the performance of the Society and put to a vote at the AGM. The Management Committee will endeavour to make interest payments as soon as viable. Interest payments cannot by law exceed 2% above the Bank of England Base Rate. It is each shareholder’s responsibility to declare such earnings to HMRC, if appropriate.
The shares are not transferable (except on death or bankruptcy) and cannot be traded; they can only be sold back to the CBS. Applications for redemptions must be made by providing three months’ notice to the Management Committee. Shares cannot be redeemed until they have been held for a minimum period of 3 years, and then only at the discretion of the Management Committee. The amount available to withdraw by shareholders in any one financial year will be limited to 10% of the current total value of shares issued. Withdrawals will be funded from trading surpluses or new share capital. The Management Committee will endeavour to meet all withdrawal requests but has the authority, if necessary, to refuse a withdrawal request if it endangers the business.
Should The Cross ever be sold, the shareholders would be repaid their investment from the proceeds of the sale, after the repayment of any debts. Any surplus would be paid into community projects, or held in trust until such monies are needed by the community. As with any such investment, there is a risk that the value of your shares may fall. To mitigate this, the CBS will own a property and land, and it is difficult to see how this will ever be worthless. As an investor, your liability is restricted to the value of your shares. In the very unlikely event that the business fails, you would have no other liability.
Shares can be purchased by completing a form.
Click here to download the form
How We Did It
A Community Share Scheme enabled the community to buy The Cross Inn. On Saturday 19th November 2016 we reached our target of £210,000. On Thursday 1st December 2016 we completed the purchase of the Cross Inn and opened the pub doors. The 151 shareholders of Great Bromley Cross Pub Community Benefit Society Ltd are now the owners of the Cross Inn, Great Bromley. Congratulations to everyone involved in the project. Read on for details of how the scheme worked.
This is now the beginning on an exciting new phase in the story of the Cross Inn. We have plenty more to do and it will take time and money. But with the support we have received so far, I know we will succeed. If you missed out on the first phase, then shares are still available. Any money invested we will spent on capital projects for the pub. We urgently need to install kitchen equipment, to provide the pub food that our customers have asked for. The pub needs re-wiring, we need to create an outdoor seating area, a smoking shelter and to upgrade the car park. And we hope we will need to provide a new home for the village post office. We have already started improvements and in the new year we will plan out some major upgrades, maybe even taking down the dining room wall. So please, if you want to invest, read on, download the prospectus and get in touch.
Village Pubs Matter - Please Help Us Save Ours
The Cross Inn, Great Bromley, a few miles outside Colchester, on the edge of neighbouring Ardleigh, closed its doors in May 2015. A few locals didn't want the Cross to become yet another statistic and decided to do something about it. We consulted the villages with questionnaires and public meetings and were overwhelmed by their support. People do think pubs are important, village pubs even more so because they are a community Hub. And that's why this project is here.
We have the unique opportunity to purchase the Cross Inn, Great Bromley from the property developer who is the current owner and re-open it as a community hub. The pub garden has already been lost to housing development, and the local community fears that if we miss this chance, then the pub and car park will follow a similar fate. Interested? Read on.
So How Can We Save This Village Local?
The people of Great Bromley, Little Bromley and Ardleigh through Save The Bromley Cross have had an offer accepted to purchase the Cross Inn. All we have to do now is raise £210,000, re-open the pub and turn it into a sustainable community pub and village hub. We promise you that if you help us raise the £210, 000, then our community will do the rest.
We'll restore the Cross Inn to be at the centre of our community and make sure it services the wider area, as it's done historically with great pub food, music, quizzes, festivals and all you expect from a village pub. We will re-open the Post Office, which used to be run from the back room of the pub. And then we'll see what comes next. A community village shop was very popular in our village survey. Let's see what we can do.
Here's Where You Come In
We are offering everyone the chance to invest in the Cross Inn by buying shares in our Community Benefit Society. Our minimum investment is £250 for 5 shares, but you can buy up to a maximum of £50,000. In return you become co-owner and one of the landlords of this fantastic village pub. Additional benefits include:
- A tremendous sense of well being for saving a village pub from property developers who would turn it into housing
- Eligibilty (true for most taxpayers) to reclaim at least 30% of the investment from HMRC against your tax liability through the EIS and SEIS schemes for current or previous year (investment needs to be held for 3 years to qualify and you must have paid sufficient tax)
- A single vote, regardless of the number of shares held, at general meetings
- Annual investment payments after 3 years, when profits allow.
- To buy shares please download our prospectus from this link.
- If you are considering buying shares then please read our business plan on this link.
- And the model rules of our Community Benefit Society are here.
Thanks for reading this. If investing in shares isn't for you, then please continue to support our project maybe via volunteering at the Cross Inn or by using the pub. You can contact us via SaveTheBromleyCross@yahoo.co.uk or via Facebook https://www.facebook.com/groups/SaveTheBromleyCross/