Interest rate, share withdrawals, and donations to the Community Benefit Fund
13th November 2017
Important Information About Your Shareholding in Low Carbon Gordano
I am taking the unusual step of posting a letter to all our members because on this occasion we want to ensure that we reach as high a proportion of you as possible. The letter will also be sent by email, so many of you will probably get it twice! There are five matters I intend to cover, all of them important.
As I reported in my August newsletter, the Board has agreed to transfer the management of our shareholdings, including functions such as the payment of interest and repurchase of shares, to Neville Registrars. We believe that they have the experience and commitment to provide a cost-effective and excellent service. Members should therefore not be surprised to receive letters and emails from the company from time to time.
Communication with Members
We are concerned that some members may not receive the newsletters that I send out several times a year, and hence may not be aware of many matters about LCG. This may be because the contact details which you gave us when you bought your shares have changed and we have not been notified, or (probably more commonly) because my usual emails are treated as SPAM by your system. For reasonsof cost, we will continue to use email for most members’ newsletters and so we hope you will follow the advice below.
a) if you have not been getting emails from us, enter both our email address (firstname.lastname@example.org) and Neville’s (email@example.com) into your address book. This should stop your SPAM filter excluding our mails, but do also check your SPAM box and ensure that emails from either source are classified as genuine. If you have changed your email address since your investment, please also email us your new one.
b) if your contact details (address, phone number) have changed, email us with your new details.
Neville Registrars will need a signed letter with the old and new details. This can be scanned or photo’d and emailed to them at the address above.
c) if your bank account has changed, make sure that you have told us and Nevilles the new details or we will not be successful in sending your annual interest payment to you. (If you have any concern about non-receipt of last year’s payment, please check your bank statements for November or early December 2016: The payment(s) should have been recorded as coming from Community Share Registry).
Annual Interest Payments
As was explained at the AGM, the Board has again decided to pay members interest of 5.5% on their shareholdings for the2016-17 financialyear. Briefly, inflation, at the relevant point in 2015 that strongly influenced our income for the year, remained low and so we have continued to pay interest of rather more than 4% above the relevant rate of inflation.
Members shouldreceive notification of the payment(s) due to them in the fairly near future and can expect to receive payment aroundthe end of November. Please note that, for administrative reasons, if you invested in both the Moorhouse and Ham Lane offers you will receive separate notices for the two investments.
Last year, some members decided to donatesomeof their share interest to the Community Benefit Fund and we have decided to again make this possiblethis year. However, members who attended our AGM were very impressed by the presentation made by a representative of Mend the Gap, the charity which LCG chose for the developing world element of our Fund. Mend the Gap is based in North Somerset and works to link communities in the UK and Kenya and implement practical projects in both areas that aim to eradicate poverty and advance education. Afterwards it was suggested that we might enable members to make a donation specifically to Mend the Gap and we are happy to adopt this idea.
If you wish to donate all or part of your interest payment (for this year only) in either way, please complete the form attached and return to LCG. You can download the form HERE. (A photo or scan of the completed form can be emailed back to us at firstname.lastname@example.org)
Withdrawal of Shares
This autumn marks three years since the shares were issued following the fundraise for our Moorhouse Lane scheme, and the end of the relevant period needed for EIS tax relief to be valid. Consequently, it is now possible for the members who invested in 2014 to withdraw their shares. For obvious reasons, our ability to do this is finite and the Board has the right tolimit the withdrawal of shares to a level that is financially prudent.
However, if you wish to withdraw your shares, the process for withdrawing can be viewed on the website as part of the Share Withdrawal Policy. Click HERE to view the web page.
New share offer
Finally, we are at last close to finalising two new projects with a combined value of around £300,000. To raise this new capital, we are consideringa 5-year ISA-bond at 4.5%annual interest. If you would like to make a further investment in Low Carbon Gordano we would like to hear fromyou so that we can build a list of interested members. Some indication of the size of the investment you would consider would also be useful so we can gauge the need for a more widespread promotion of the offer.
all the best
Chair, Low Carbon Gordano
tel: 07976 320445