2020 Rule Changes
We wanted to develop an approach to Member requests for share withdrawals in way that can be seen to be open, transparent, and fair. This has now been approved by Shareholders at an Extraordinary General Meeting in February 2020, and the Financial Conduct Authority. The new Rules are set out below:
Old Rule 8.4.2
application for withdrawal shall be made on not less than three months’ notice, on a form approved by the Management Committee;
New Rule 8.4.2
the Management Committee shall consider in each financial year whether to permit withdrawal of shares, and shall notify shareholders accordingly;
Old Rule 8.4.5
all withdrawals shall be paid in the order in which the notices are received, up to a maximum total withdrawal specified for the financial year, following which no further withdrawals may be made;
New Rule 8.4.5
if withdrawals are permitted in any financial year, the Management Committee shall specify a period during which applications for redemption must be made and shall at the close of that period determine how the total amount available for redemption shall be allocated between applicants;
In effect this means the Management Committee will advise shareholders each year whether sufficient funds exist to offer withdrawals. If so, then the Management Committee will publicise a share withdrawal request period, and will manage applications in a manner that is orderly, well communicated, and can be seen to be fair & equitable.
In the current pandemic we are focussed on maintaining the Shop and supporting the community. This will clearly impact on our finances and thus any available surplus. We’ll provide a full update on 2019-2020 performance at the AGM. This is scheduled for late June but this may change due to the current pandemic. To see the new Rules click here, or go to the 'About Benenden's' page on the website.