Governance and Board of Directors of Green Energy Mull
Green Energy Mull is an Industrial and Provident Society for the benefit of the community, owned by its members on a one person – one vote basis.
The Board of Directors (‘the Directors’) will be elected by the membership at the Annual General Meeting. The Directors do not receive any remuneration for their work as Directors other than reimbursement of expenses incurred. Their meetings and decisions are carried out in accordance with the rules of the Society. Information about the Directors is available on the website or on request.
Every purchaser of shares becomes a member of Green Energy Mull.
There is always the risk that you could lose some or all of your share capital.
A detailed risk assessment has been undertaken, details of which are available in the FAQ section.
Can I get my money back and does it earn interest?
Investing in Green Energy Mull should be seen more as a social rather than a financial investment. Green Energy Mull does not guarantee a safe haven for your money.
Green Energy Mull is permitted to pay interest on your shares. By law we cannot offer a generous interest rate and we are unlikely to pay more than a nominal interest to our shareholders for several years and may pay no interest at all.
Interest to members will only be paid in accordance with Green Energy Mull’s aims to be of benefit to the community and has a limit in law. Based on the above assumptions about the likely pre-tax profits, the Directors expect to be able to pay an annual interest on share capital from year 3, and the target from year 6 will be 4%. Interest will be paid gross.
The planned financial return is not high nor is it directly linked to the surplus that Green Energy Mull generates. The actual rate will be at the Directors’ discretion.
In order to minimise administration costs the Directors have the right to defer payment of interest on an individual shareholder basis until the accrued value reaches a threshold amount.
The shares are not transferable (they cannot be sold to other people) and cannot be withdrawn for at least 3 years. From that point, shares can be withdrawn, subject to the Directors approval and 180 day’s notice. The Directors have the right to change the notice period for withdrawals, or to suspend withdrawals.
Shares in this Industrial and Provident Society cannot be sold or traded and there is no prospect of them ever being worth more than their nominal value.
If the project for some reason does not progress, money will be returned to investors in full less any costs of administering the share issue.
In the event of Green Energy Mull ceasing to trade, shareholders will be re-paid up to a maximum of £50 for every £50 share owned, once all creditors have been repaid in full.
Purchase of one share provides membership of Green Energy Mull. Purchase of 5 shares enables an investor to vote on the running of the company and to put themselves forward to become a director of the company
The purchase of shares should be seen as both a social investment to support the aims of Green Energy Mull and an investment for personal gain or profit.
Membership is not suitable for anyone who needs income from investments or immediate access to their capital.
Although the Directors will implement prudent management policies, there is always the risk that you could lose some or all of your share capital.
Green Energy Mull is run by a team of local people, many with professional qualifications and all with useful experience, including in engineering, planning, business, law and accounting.
By completing the application for membership you consent to Green Energy Mull and our contractors and agents holding personal data about you in accordance with the Data Protection Act 1998. We do not sell shares or exchange mailing lists.
Important notice on money laundering
It is a term of this offer that, to ensure compliance with the Money Laundering Regulations 2003, and the Proceeds of Crime Act 2002 and such similar legislation, you must have the authority to sign the application form. You will also supply us with proof of identity and address if asked.
Terms and Conditions for applying for shares
You cannot withdraw your application for shares after we receive your application form.
The Directors do not have to accept your application for shares. They may decide not to issue shares to you or may allocate you fewer shares than you applied for. They do not have to give any reason for their decision.
Your application will be considered for approval at the first Directors meeting after the closing date for the offer, and therefore you should not expect an immediate response.
The Directors will acknowledge receipt of your cheque /BACS payment and application within 14 days. They may cash your cheque as soon as it is received. Green Energy Mull will hold your money on trust for you until the Directors consider your application.
If the Directors decide not to issue you shares, your money will be returned within 28 days of a Board of Directors meeting. If they decide to issue fewer shares to you than you applied for, they will return the balance to you (within twenty eight days of that Board of Directors meeting).
The money will belong to Green Energy Mull as soon as Green Energy Mull issues shares to you (to the extent that they take it as payment for shares).
Green Energy Mull will not pay you interest on any money it returns to you.
Governing law and investor protection
Green Energy Mull has been formed under Financial Conduct Authority regulation and supervision as an Industrial and Provident Society set up by members to re-distribute the net profits from the project back into the local community.
Green Energy Mull is not an authorised institution under the Banking Act 1987 and does not accept deposits. This means there is no share deposit protection scheme for investors.
Green Energy Mull is an exempt person from the regulated activity of deposit taking by its issue of shares pursuant to Paragraph 24 of the Schedule to the Financial Services and Markets Act 2000 (“FSMA”) Exemption (Order 2001).
The shares are not a specified investment for the purposes of Section 22 of FSMA pursuant to Paragraph 76 of FSMA (Regulated Activities) Order 2001.
The issue of withdrawable shares, which are not transferable, exempts this document from the requirements of an approved prospectus required by Section 85(1) of FSMA.
An investment in the withdrawable and non-transferable shares of an Industrial and Provident Society is not treated as a controlled investment for the purposes of Section 21 of FSMA (The Financial Promotion Prohibition) pursuant to Paragraph 14(3) of Schedule 1 of the FSMA (Financial Promotion) Order 2005.
Green Energy Mull has taken all reasonable care to ensure that every statement of fact or opinion included in this information document is true and not misleading.
Any individual British Citizen and resident of the UK aged 16 or over and any organisation may apply to become a member of Green Energy Mull, and may invest in Green Energy Mull by applying to buy shares.
Applications for shares must be made on the application form, and must be accompanied by a cheque in payment or confirmation of BACS payment.
Acceptance of your application will be notified by issue of a Share Statement, which will be posted as soon as possible.
The Board of Directors reserve the right to reject any applicant in whole or in part, in which case the application monies will be returned by cheque through the post at the applicant’s risk.
Registered office of Green Energy Mull:
An Roth Community Enterprise Centre, Craignure, Isle of Mull. PA65 6AY