The HoTTWind@Longley Community Benefit Society (CBS) has some 180 Members who have invested in shares in the Project, more than 80% of whom live in the Holme Valley HD9 postcode area
By having investing in the Project, the Members are:
- bringing social benefit to the community – generating more than £500,000 for local community projects over the 20 year Project life
- helping to generate clean ‘green’ renewable electricity
- participating in ownership of a local community business
- getting an equal vote with other Members regardless of their number of shares
- able to hold the HoTTWind@Longley Board to account and to elect Directors
- eligible to stand as a Board Director
- eligible for interest paid on their Shares as determined by the Board
As the Project’s primary aim is not receiving interest on an investment, but about helping to build a sustainable community, there is limited financial reward. This is a long term investment with interest paid annually. The shares cannot go up in value. If Members wish to withdraw shares at any point they can only be withdrawn at face value. While provision will be made to cover reasonable withdrawal, it is not guaranteed that Members will be able to withdraw their shares on demand. When the Society is in surplus, HoTTWind@Longley aims to pay interest on the shares at a rate determined by the Directors. HoTTWind@Longley will seek to pay 7.5% per annum interest.
Interest is paid gross and is taxable. Any additional profits after reserves will be gifted to a Community Fund and used for benefit of the local community.
Shares cannot be sold or transferred to another person but can be withdrawn, subject to a limit on total withdrawals, after a period of 3 years. This time period is to ensure the Society has an initial period of financial stability. After 3 years, Members can request to withdraw shares with three months’ notice, subject to Board approval. The Directors have the right to refuse or suspend withdrawals, for example if the business does not have sufficient cash for the total requested.
In the event that HoTTWind@Longley is wound up, if its assets exceed the value of the share capital, the Members will only get back the original value of their shares. Any excess value would be transferred to another community organisation with similar community benefit aims. This is known as an ‘asset lock’ and is to prevent private gain if the organisation dissolves. Members have no liability beyond the value of the shares they purchase.