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Be positive with your money. Invest in The Phone Co-op and you'll be putting it to good use.
By providing capital at a rate lower than we would otherwise have to pay, you'll be helping the only
co-operatively owned telecoms business in the UK to grow and develop. That's good news for all of our customers
and members.
We'll pay you interest on your share capital account. This is set at a variable rate, and the aim is to provide a
good deal in comparison with bank or building society savings rates.
The current rate is 5% gross per annum (as of 12/12/2008).
That's in addition to your Member Dividend.
Not only are we the only telecommunications provider to return profits to our customers, each year we distribute
part of our profits through a fund that helps other co-operatives to get started and to develop.
How much to invest
The minimum investment to qualify for membership is just £1. However, we would like to encourage
members to consider investing more than that. Under current legislation, the maximum amount anyone can
invest is £20,000*.
To provide the finance we need to in order to continue to expand, we need the equivalent of approximately one to
two month's customer billing, so you might like to consider investing roughly the amount you spend with The
Phone Co-op in one or two months.
We recognise that not everyone will be able to, or will wish to invest that
much. On the other hand, some members may wish to invest a larger amount, and of course we welcome that.
The risks of investing
Members should be aware that share capital in a co-operative is risk capital. Ultimately, if things were ever to
go wrong for The Phone Co-op, share capital would be at risk. We aim to build a strong and successful
co-operative business, with more than enough assets to cover its members' capital.
However, as an organisation
committed to openness and transparency we feel it is only right that we should warn members that there is some
risk. Please see the note below on the code of practice we adhere to in relation to share capital.
Investments and withdrawals
Investments and withdrawals of share capital can be made by post. Withdrawals can be made at any time without
penalty and will normally be processed within one week of receipt of a member's request.
The notice period for withdrawals is set by the Rules at 1 week. However, the Board has the power to waive this and unless there are exceptional circumstances it would do so.**
Existing Members - forms for making investments and withdrawals can be found on the shareholder accounts page.
Payment of interest
Interest will be credited to your account once per year, after the Annual General Meeting***. Interest is paid gross
without deduction of tax, and it is the responsibility of members to declare the interest received on their tax
returns, and to pay any tax due. Currently, the interest rate is 5% gross per annum.
How do I invest?
If you are not already a member, please complete a membership
application form and return it with your initial investment. If you are already a member, please send a cheque
for the amount you wish to invest, together with your share passbook, to:
The Phone Co-op Limited, 5 Millhouse, Elmsfield Business Centre, Worcester Road, Chipping Norton, Oxfordshire
OX7 5XL.
Please make cheques payable to "The Phone Co-op Limited." You'll receive a share pass book, showing the
value of your investment and of interest and dividends credited.
Code of Practice
The Society, unlike banks and building societies, is not subject to prudential supervision by the Financial
Services Authority. The Phone Co-op abides by a code of practice which requires it to provide a statement to its
shareholders of the nature of their investment and any change affecting it.
The position you occupy as a shareholder of The Phone Co-op is no different from that of a shareholder in
any other corporate body in the sense that, if The Phone Co-op fails, you may not have all, or any of your
investment returned to you.
Your liability, however, does not extend beyond your own investment. Your investment is withdrawable without
penalty**.
If you have any questions regarding the code, please address them to: The Secretary, The
Phone Co-op Limited, 5 Millhouse, Elmsfield Business Centre, Worcester Road, Chipping Norton Oxon OX7 5XL.
What if I have any questions?
If you have questions or would like further information, please call us on 0845 458 9000 or
email enquiries@thephone.coop
* An exception applies to other societies incorporated under the Industrial & Provident Societies Acts,
where there is no maximum.
** The Phone Co-op's rules provide for a notice period of one week for withdrawals, although the
Board has the discretion to waive this notice period (and, in practice, has done so until now). The Board
also has the power to suspend withdrawals. If you make withdrawals leaving a balance of less than £1, you
will cease to be a member.
*** Subject to approval by members at the Annual General Meeting.
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