FAQs for The Baker Arms Community Pub project:
What is a community pub?
A community pub is a pub business owned and managed by the local community, serving the needs and interests of its residents. With approximately 100 community pubs already operating across the country, this model has proven successful in fostering community cohesion and preserving local amenities.
Why form a community pub?
By establishing The Baker Arms as a community-run pub, we ensure its continued existence for future generations. Without this initiative, the pub may remain closed permanently, depriving our village of a vital social hub.
Who will benefit from the Baker Arms becoming a community-run pub?
We'll directly benefit from having a preserved amenity that contributes to the strength and unity of our community. The pub will serve as a gathering place and catalyst for social interaction, enhancing the quality of life in our village. It may evolve to offer other amenities.
How will the community pub be funded?
Community pubs are typically funded through a public share offering, providing community members with the opportunity to invest in the venture. We plan to do this and also apply for grants to match the community share offer.
How will the community pub be run?
We've chosen to operate as a Community Benefit Society, because:
- the CBS is a tried and tested model, regulated by the FCA
- It allows us to issue withdrawable shares to the public
- It offers a democratic structure, where membership is drawn from the community and each member has one vote, regardless of how many shares they own in the society.
For more information, please see:
Why become a Community Benefit Society? - Wrigleys Solicitors LLP
Model Rules for a Community Benefit Society (plunkett.co.uk)
Why should I buy community shares in The Baker Arms?
Your investment is crucial in acquiring and maintaining The Baker Arms. Without sufficient community support, we risk losing this valuable asset. By purchasing shares, you not only contribute financially but also become a part-owner with a say in the pub's management.
Do my shares give me voting rights?
Yes, they do. Under the Community Benefit Society rules all shareholders, regardless of the size of their investment, have equal voting rights, ensuring that decisions are made collectively by the community.
What are the minimum and maximum investment amounts?
The minimum investment we are proposing is £250 per share, although larger investments are encouraged to ensure the sustainability of the pub project. The maximum individual holding is TBC.
Will I receive interest from the investment my shares?
The Community Benefit Society's rules allow for payment of interest to members if prudent, subject to the success of the business, and discretion of the management committee. In the first few years it is likely that surplus will be used to build reserves and reinvest in the improvements to project, but we aim to pay interest to shareholders in the long run.
If major issues arise (e.g. structural failure of the building), are shareholders liable for repair costs?
No, shareholders' liability is limited to the value of their shares. The Bayford Community Benefit Society is a limited liability entity, safeguarding investors from additional financial obligations.
Will I get my investment back if The Baker Arms fails?
In the event of closure, the pub's assets, including the building, would be sold, and proceeds after creditors satisfied distributed among shareholders according to their investment. While there is a potential risk of loss, investing in The Baker Arms supports a community-owned venture with long-term benefits.
Can I make a donation instead?
Of course, this will be welcomed. Every contribution helps secure the future of The Baker Arms.
Who should I contact for further questions?
Please reach out to us on hello@friendsofbakerarms.org with any inquiries or clarifications regarding The Baker Arms community pub project. Or add your related comments or questions below.
Thank you for taking the time to complete this questionnaire. Your feedback is crucial in shaping the future of our community.
Warm regards,
Bayford Community Benefit Society
