What happens to your money
Each share in Esk Energy has a nominal value of £1. The minimum shareholding for an individual is £250 and the maximum (set by law) is £20,000.
As noted above each member, no matter how many shares they hold, has one vote.
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 Esk Energy should be seen more as a social rather than a financial investment. Esk Energy does not guarantee a safe haven for your money.
Esk Energy 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 Esk Energy’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 3% (updated August 2012). Interest will be paid gross.
The planned financial return is not high nor is it directly linked to the surplus that Esk Energy generates. The actual rate will be at the Directors’ discretion. After payment of members’ interest, the remainder of the surplus will be used to further the aims of Esk Energy.
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The shares are not transferable (they cannot be sold to other people) and cannot be withdrawn for at least 5 years. From that point, shares can be withdrawn, subject to the Directors approval and six months notice.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, prior to September 2012.
In the event of Esk Energy ceasing to trade, shareholders will be re-paid up to a maximum of £1 for every £1 share owned, once all creditors have been repaid in full.
Purchase of shares provides membership of Esk Energy.
The purchase of shares should be seen as a social investment to support the aims of Esk Energy and not 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.
Esk Energy is run by a team of local people, many with professional qualifications and all with useful experience, including in engineering, farming, architecture, planning, business, law and accounting.
By completing the application for membership you consent to Esk Energy 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.