Special Resolution A: Supporter Shares

Special Resolution A.

That amendments are made to the terms and conditions of supporter shares, and made to be effective for all supporter shares issued from 31st December 2020:
removal of obligation on the co-operative to redeem the supporter shares of a member on their death or incapacity;
minor clarifications of text and language;
inclusion of worked example (illustrative only).

That in Rule 17 the words “except to settle a claim by a member’s next of kin
following the member’s death” are removed from the Rulebook Rule 17. i).

Revised rule to read:
“If the Redemption Fund contains no funds, members’ Supporter Shares
may not be redeemed.”
That Rulebook Rule 18 is replaced with the following text:
18. “Treatment of Shares in the event of Death, Unsound Mind or Bankruptcy
i) For the avoidance of doubt, upon death, or if the member is declared bankrupt, or if found to be of unsound mind to the satisfaction of the Board, a member’s Founder, Music Maker, Fan and Collaborator shares are cancelled without payment.
ii) For the avoidance of doubt, supporter shares are not redeemable on retirement or death of the shareholder, or in the event of the shareholder being declared bankrupt or found to be of unsound mind. A redemption request may be made by a supporter shareholder’s next of kin or legally appointed representative following the shareholder’s death, bankruptcy or the shareholder being found to be of unsound mind. If the redemption request is agreed in full or in part by the Board, the Supporter Shares will be redeemed at par value, then paid to a legally appointed trustee or held in trust by the Co-operative until such a person is duly appointed. Redemption requests on retirement or death are otherwise handled as all other redemption requests.”

Resonate Rulebook

When the Rulebook was created from templates from Fairshares.coop it included certain clauses about immediate paying back (‘redemption’) of shares on the death of a shareholder. We’d like to reduce the (small) risk to the co-op going forward and simplify this a little. Supporter shares pass to an heir or trustee, or are held in trust by us. Hope that’s OK :slight_smile: