1 What are the arrangements if a shareholder wants to take their money out?
This will have to be done through the company. Either the company can buy the share(s) back or arrange for it to be bought by someone else.
2 Can one person buy more than one share?
Yes. at present we are asking for monetary pledges. Shares will be allocated in proportion. It is proposed that one person may not own more than 5% of the shares issued.
3 Can one share be part-owned by more than one person?
Yes. But each share will have only one vote. Only one name can appear on the register of shareholders for each share and only that person can cast the vote relating to that share.
4 If we commit funds to purchase a share, will our money be safe?
Any money collected from prospective shareholders will be held in the client account of a reputable Derby firm of chartered accountants, Johnson Tidsall of 81 Burton Road, Derby DE1 1TJ. Funds will not be released from this account for any purpose except that of the purchase of the property described below. If the buy-out campaign fails in its purpose, funds will be returned in full to subscribers as soon as possible.
5 What are we buying?
We are buying the freehold interest in the property described on the Scargill Mann website - a building containing retail shop premises (the Post Office) on the ground floor and a five-bedroom dwelling extending over three floors, plus a small outside area.
We are not buying the Post Office business.
6 Have we got a business plan?
No. We don't need one at this point but we do need a clear outline plan of what we
are going to do. This is it:
1. Buy the building
2. Keep the post office open where it is now, leased to the sub-postmaster
3. Do immediate essential work:
- Seal off the post office from the rest of the building
- Do other work required by Royal Mail such as replacing doors and windows
- Make a fire exit at the rear
- Make the downstairs toilet usable
4. Decide what to do with the rest of the building once we've bought it. Some possibilities are one dwelling, two dwellings, offices, retail, storage - and there are probably others. In any case we would need to find out what we could get planning permission for.
5. Do the necessary alterations for the use decided on.
6. Rent out the developed space, or sell it.
7. Then keep the thing going.
7 If the upstairs is used as rented dwelling(s) how will we manage them?
We will appoint a letting agent to do this for us.
8 What will we do with income from rentals?
- Support the post office function by funding the appointment of part-time staff
- Maintain the building fabric
- Create a reserve of funds for one-off expenditure
If any surplus remains a dividend would be paid but this is unlikely, certainly at first.
9 Can we develop the retail side of the post office?
Probably, so that it gets more trade. But we'll think about that when we've got the building.
10 Will we need planning permission?
Yes, for everything.
11 If this is a community venture, why are we using a private limited company?
For speed and convenience - we can buy an "off the shelf" company quickly and
cheaply to use as a buy-out vehicle. We have to be an incorporated company
with limited liability to make it possible for us to buy and run the property. We
recognise that other forms of incorporation (such as Private Company Limited by
Guarantee or Community Interest Company) may be more appropriate to community
ventures such as this. We will examine the possibilities of changing the company's
status at a later date if such action attracts support from shareholders. At this
moment, however, time constraints do not permit these alternatives to be pursued.
12 Who will be the directors of the company?
Directors will be elected by the shareholders, initially at a shareholders' meeting on a date close to exchange of contracts for the purchase. Only shareholders will be able to be nominated and elected as directors. It is proposed that there should be five directors, with a quorum of three at director' meetings, and that any two of the five will need to be signatories for cheques.
13 Will directors of the company be remunerated?
No. They will only be entitled to reclaim reasonable expenses incurred solely in the furtherance of the company's business.
14 How will the company be accountable to its shareholders?
Shareholders will benefit from the statutory protection offered under company law relating to private limited companies. At the very minimum, shareholders can participate in the Annual General Meeting, vote on resolutions to determine the company's ability to change its share capital or status, elect directors and examine the company's report and accounts, published annually. However, a company born out of a community initiative such as ours would expect to maintain a more active dialogue with its shareholders.
15 What would happen if the company is dissolved, sold or wound up?
It's unlikely that this would happen unless the shareholders agreed that the company had served its purpose. In the event of cessation of the company's business, its assets (principally held in the property) would be shared among all shareholders once debts and other liabilities had been paid.