Speldhurst Parish Consultation - a longish read (but worth it!)

I thought it might be worthwhile (for everyone) to clarify what is the 'business' represented by Speldhurst Community Shop Limited. In one sense the word "business" is entirely appropriate because like any business we must pay all our costs and at least break even (hopefully better), in cash terms. Since 2019 we have achieved that, although inflation and energy costs have been unhelpful in 2023. Without our paid staff and our unpaid volunteers (including Duke of Edinburgh volunteers), this would not be possible. In another sense the word "business" suggests an enterprise where the shareholders are seeking to make a profit either through an increase in the capital value of their shares, crystallised by a sale of those shares, or a return e.g. through dividends. This is where the word "business" in its normal sense might be misleading. (Forgive me if you have already read this on the information page available at http://www.speldhurstparishcouncil.gov.uk/.../speldhurst.../ ) Speldhurst Community Shop Limited is a Community Benefit Society, a mutual registered on the Financial Conduct Authority Mutuals Public Register. A Community Benefit Society is a structure designed and carefully regulated to ensure that benefits accrue to the community and not to individual members. It is governed by the Co-operative and Community Benefit Societies Act 2014, specifically designed for activities that benefit the wider community. It has a co-operative membership structure that adheres to the principle of ‘one member, one vote’. It has strict rules restricting the use of its assets and surpluses (if any), to activities which benefit the community. For the avoidance of doubt the Chapel freehold would NOT be an asset of the Society, it would be owned by Speldhurst Parish Council. Limited interest (equivalent to dividends) may be paid to its members under certain circumstances. Since 2019 we have not paid any interest to our members. That is reviewed annually. The community shares for which members have subscribed can never be redeemed for more than their original subscription price. In our case that is £25 per share for the community share offer in 2019 raising £75,000 from c. 220 members to allow the community to save the shop and Post Office from closure. For the Chapel project we will be seeking c. £200,000 in a second community share offer. Members can request to redeem their shares (at £25 each) no earlier than 3 years after subscription. The Management Committee have full discretion to accept or decline such requests, depending on the financial position of the Community Benefit Society at that time. Community shares are non-transferable, except in extremely limited circumstances (death or bankruptcy of the member). I hope this is helpful - a Community Benefit Society is not something that people come across regularly! If you know the shops at Benenden and Ide Hill, they work on a similar basis. The accounts and rules of Speldhurst Community Shop Ltd are matters of public record, I would happily supply them. Drop me a line if you wish at speldhurstcommunityshop@gmail.com. best regards, Edward Pinnell, Chair.