COMMUNITY BENEFIT SOCIETY
A Community Benefit Society was set up on 22 August 2023, using the Plunkett foundation model and registered with the Financial Conduct Authority as ‘The White Swan Inn Community Group Ltd’ registration number 9129. Establishing this CBS enables funds to be raised to purchase the pub through shares issued.
The CBS commissioned a report and valuation on the pub in November 2023 and subsequently made an offer to purchase but has not yet been accepted.
How a CBS works
The White Swan Inn Community Group Ltd would be owned by the members and have a Management Committee elected by the membership and controlled within the local community. Membership is gained by the purchase of community shares and new members will be actively encouraged to join thus becoming part owners in the venture. A fully democratic structure would be adhered to and governance by a strict one member one vote would operate.
An asset lock would exist to ensure that the White Swan, once purchased by the society, cannot be sold for the private benefit of those involved.
The main reasons why the Community Benefit Structure has been chosen are as follows: -
The business would be run primarily for the benefit of the community.
Share capital can be raised from a wide range of investors with minimal governance overview from regulators.
Investors would have a clear understanding that it is a community project they are investing in and that funds are treated as long term investments with the option to withdraw their investment if funds permit.
It is a fully inclusive model of one person one vote regardless of the level of investment made.
The model allows for an “asset lock” to be placed on the business thus enabling grant funding to be obtained and also secures the long term survival of the White Swan pub.
Limited liability status is secured.
It is a proven model used by other communities who have purchased their pub.