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Charsfield Three Horseshoes Community Pub Limited (Community Benefit Society No: 31509R) Prospectus

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Charsfield Three Horseshoes Community Pub Limited (Community Benefit Society No: 31509R) Prospectus The Charsfield Three Horseshoes Community Pub Limited (Community Benefit Society no: 31509R) Prospectus Charsfield has been without a pub since the Three Horseshoes closed in May 2011. Together we can open it again. We can secure it for the long term as a successful ‘community pub’, providing a range of facilities for everyone living in, working in, or visiting the area. This is a unique opportunity for you to help revitalise the pub so that it provides facilities for everyone (most particularly a good pub with decent food and excellent real ale) and supports local producers. www.froth.org.uk The Charsfield Three Horseshoes Community Pub Limited What has happened so far? Two meetings (50+ at each) just before the pub closed (May 2011) agreed the village should save the pub. ‘Friends of the Three Horseshoes’ (FROTH) formed, with a steering group of 8 local volunteers. FROTH has organised monthly parties/meetings in the Village Hall, each attended by over 70 people. Charsfield’s first ‘pop-up pub’ on Christmas day was enjoyed by over 200 people. A packed and lively New Year’s Eve party in the village hall was again a big success and attended by over 100 people. At the meetings, the steering group gave updates on the progress that had been made and what still needed to be done. The funds raised paid for producing, launching and distributing this prospectus. The Society has an established contact email list of over 150 ‘supporters’ and people interested in being kept in touch with what is happening. The Charsfield Three Horseshoes Community Pub Limited The steering group has now set up The Charsfield Three Horseshoes Community Pub Limited which came into existence on 12 January 2012. It is a ‘Community Benefit Society’, a special form of legal organisation (like a company, but specifically designed for community schemes such as this one). It is referred to as ‘the Society’ below. ‘FROTH’ will continue alongside the Society as the informal group organising parties and pop-up pubs, at least until the pub is bought and re-opened. The Society’s aims: To get the pub re-opened on a secure and permanent basis. To make the pub a ‘hub’ for local life, where people can meet and socialise. To use the pub as the base for other local activities and services for the whole community. What now? This document is an invitation to you: To become a member of the Society. To invest to help buy the Three Horseshoes and set it up as a community pub (if no-one else buys it in the meantime). As set out in its Rules (available on www.froth.org.uk) the Society’s formal legal ‘objects’ are: To buy the freehold of the Three Horseshoes, Charsfield, Suffolk; To run the Three Horseshoes as a pub, and to provide services based at the pub, for the benefit of people who live in, work in, or visit the Charsfield area; and To operate in an open, democratic, environmentally-sustainable and family-friendly way, providing welcoming facilities at the pub for all members of the community including by, where possible, using local produce. All members of the Society will have an equal say in how the Society is run – one member one vote. We hope people will join us in investing because they are committed to getting the pub running again as a community resource for those who live in, work in, or visit the Charsfield area. This is not a commercial investment or a way to ‘make money’ from the pub. But, if the pub does well, the Society would pay investors interest on their investment at a similar rate to a building society account. 2 A Community Benefit Society This prospectus On the following pages there is more information about: The Charsfield area. ‘The Charsfield Three Horseshoes Community Pub Limited’ (the Society). The Society’s ‘Board of Directors’. Buying the Three Horseshoes. Running the Three Horseshoes. The ‘business plan’. Joining and investing in The Charsfield Three Horseshoes Community Pub Limited. There is more information on the FROTH website – www.froth.org.uk The Charsfield Area Charsfield is a village near Wickham Market and Woodbridge, North East of Ipswich, Suffolk. Charsfield became internationally famous as the setting for Ronald Blythe’s 1969 book Akenfield: Portrait of an English Village, made into a film by Director Peter Hall in 1974. In 1997 Anglia TV made two short documentaries about the village and in 2004 as part of the 30th anniversary of the original film BBC4 made Akenfield Revisited. Charsfield has changed a lot since then. Many of the village facilities had closed even before the Akenfield film was made. With the pub also now closed, Charsfield has few community facilities left. The primary school, the village hall, the recreation ground, and two churches are all important, but none provides an independent ‘hub’ for village life as the pub did before, and could do again. 3 The Charsfield Three Horseshoes Community Pub Limited Many people feel that, without the pub, the local area has lost its social heart. But the highly successful FROTH parties have shown that people around Charsfield want to get that back. Losing it for good would be a great blow to the area, even for people who are not regular pub goers. Charsfield parish has a population of about 360. Neighbouring communities with no pub include: Charsfield 360 Dallinghoo 160 Monewdon 110 Letheringham 60 Hoo 100 Debach 100 Clopton 370 Total 1,270 The Charsfield Three Horseshoes Community Pub Limited Stage 1: FROTH The FROTH steering group circulated questionnaires last summer. Local people said: They want to get the pub open again. They are keen to help to make that happen, including by investing. They want ‘the village’ to buy the pub, rather than just renting it. The overwhelming majority want that to be done by an organisation in which each member has an equal vote regardless of how much money they have invested (which is why we have set up a Community Benefit Society rather than an ordinary company). 45 people said that they would invest over £70,000 between them (ranging from £250 to £10,000 each). That was a fantastic response in a very short time, particularly given that the proposals were not formal, detailed or firm at that stage. Lots of other people said they too would invest, but they would wait until the Society was set up formally with specific plans before coming forward and saying how much. Many of those would-be investors have not been regular users of the pub in the past – but they would be if it was a community pub; or they just want the pub to be there (to keep the social heart in the village), so they have the option of going there occasionally. Full details of the questionnaires and answers are on www.froth.org.uk Stage 2: The Charsfield Three Horseshoes Community Pub Limited With such enthusiastic responses to the questionnaires, it was decided to set up formally. We took advice, including from Co-Operatives UK. After looking into the various options, and dealing with the procedures involved, The Charsfield Three Horseshoes Community Pub Limited was set up. That 4 A Community Benefit Society took longer than hoped, but is now finalised. There is information on www.froth.org.uk including links to an independent guide to ‘what it means to invest in a Community Benefit Society’. The Financial Services Authority (FSA) registered the Society on 12 January 2012 (FSA Number: 31509R), making it a formal legal entity (like a company, but for democratically-run community enterprises). The Society’s Rules (based on model rules produced by Co-Operatives UK and formally approved by the FSA) are available on www.froth.org.uk. In outline: The Society can only do things consistent with its formal stated objects – as above. It is a ‘limited liability’ corporate body (so no-one can lose or be liable for more than they have invested). Anyone over 16 can become a member if they invest the minimum amount (as below). All members have one vote regardless of how much they invest. At least half the members at any time must live or work within 6km of the Three Horseshoes (see map on page 3). The Society is controlled by all the members, voting in ‘General Meetings’. The Board (3 to 10 people, currently 8) makes decisions between General Meetings. At each Annual General Meeting, all the members will elect the next Board. The Board has a Chairperson, a Secretary, and a Finance Director. The Society can employ managers and others to run the pub. The Society can pay interest on investments. Members can ask to withdraw their investment after 3 years (see more detail below). Shares are only ever worth what was paid for them, and might be worth less. Any ‘profit’ (after any interest payments have been made) from running or owning the pub must be ploughed back into the pub. If the Society were to be wound up, then any money left after paying back investors must be dispersed to another, local, community organisation. So members cannot make money from it (other than through interest on their investment). Rules can only be changed by a two thirds majority of members. Some cannot be changed. That provides a solid basis for us all to work together and invest in our community in a democratic fashion, but with appropriate controls in place to minimise the risk of things going wrong. 5 The Charsfield Three Horseshoes Community Pub Limited FROTH supporters outside the Three Horseshoes The Society’s Board of Directors The 8 members of the FROTH steering group were the ‘founder members’ of The Charsfield Three Horseshoes Community Pub Limited and, as founder members, became its first Board.
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