Third Meeting of Rangers Commmunity Interest Company Working Group (RangersFirst)

[rea 0]

In a community share issue you do indeed get a Community share that is (sort of) in the Trust that issues it.

 

This share is technically transferable and can be withdrawn and issue a dividend to the owner of the share, although it is only at the approval of the board of the trust who run the scheme and while you need to be a member of the issuing supporters trust to buy Community Shares you do not need to be a Community Share owner to be a member of the trust.

 

So the decisions to pay back a Community Share can be made or influenced by those that are not actually contributing to the scheme.

 

Also there can be issues in Community Shares schemes that are invested at a fixed price (e.g the price you pay for the Comm Share) but that are used to buy something with a variable price e.g a PLC or quoted product, as you can end up chasing cash, especially is share have to be cashed in upon the death of the shareholder.

 

But as you say you do get to say that you actually own something, a Community Share in a Supporter Trust

 

A pure membership scheme also has pros and cons, but specifically the CIC model mitigates a number of these.

 

A low price entry point that is not fixed, like a Community Share price must be, mean the membership can adjust the price point as circumstances change or aims and objectives are met. For example a CIC could reduce the membership fee to a £1 per annum once it had achieved its purchase of the shares in any club....it could even make membership free......key is it would be upto the members to decide.

 

While in a CIC that starts as a membership scheme you are indeed not buying a "share" just a membership, once a membership has been established this can in fact if the members want to be changed and the CIC can in fact issue shares to those that have been members, via a few routes.

 

If you do chose to contribute the generous sum of say £50 per month their is nothing to stop you reducing this to the minimum at any point, the CIC however can recognise you larger capital contribution at a later stage if the members want to.

 

In either even no matter how much you put in as either community shares or CIC membership you only get one vote

 

The Key to a CIC CLBG initial membership scheme is its flexibilty, it can respond to the wishes of its members with its members money, that is why i like them.

[rea 0]

Totally agree Bluedell , a major major flaw and has now pushed me into joining the buyrangers scheme

 

whatever you do key is to join something rather than nothing and join it at a price you can afford, and always check the small print, remember a Community Share purchase financial product that is exempt from regulation....(for reason i will not bore you with)

[Guest magnus]

I think this will be a massive problem for this scheme then , I am not looking for a tangible return but say I could afford £50 and do so for 5 years contributing a total of £3000 then surely there must be a case that I keep my voting rights , that figure might be too low or too high but hopefully you get my point .

 

People who contribute don't own the shares? It's asking people to throw their money down a drain. I'm afraid my initial excitement and enthusiasm for this project has been well and truly extingiushed.

[rea 0]

In neither a CIC membership scheme or a Community Share issue do you own directly the shares in any Club