A Community benefit Society (CBS) is owned by its members and is run for the benefit of the whole community.
Members buy shares in the CBS and their liability is limited to the value of their shares.
The money paid for the shares is used to fund its start-up, capital and development costs.
The members hold the Board to account at the annual general meeting and receive the Directors' report which outlines how the CBS is performing.
The Directors must be members and can stand for election to the Board at the annual general meeting. The Directors are then responsible for CBS' management during the year.
Each member has one vote at meetings regardless of how many shares they hold.
Members can receive interest on the value of their shares.
The Financial Conduct Authority (FCA) approves the rules of all CBS' and registers them. Holmfirth Tech Ltd was set up in March 2018 as an exempt charitable CBS with the specific purpose of owning The Tech and ensuring it remains in ownership of local people. Its registration number is 7739 and a copy of its rules are available here.
What is a Community Benefit Society?