As a cooperative we are required to conform with the Cooperative Company Act and the Companies Act. the cooperative status requires a Transacting Share, which must retain as lease 60% of the voting for any voting that may be required. Any other share types can either be non-voting or not more than 40% of the total voting rights.
At present we have the Transacting Share (T-Share) which has an issue value of $365 per share, restricted to one share per person or entity.
We also have a Supporting Share (S-Share) which currently is non-voting. The issue value of the S-Share is $1, and there is no restriction on the number of S-Shares that can be held. With the exception of the requirement of the Financial Markets Conduct Authority, applicable to small cooperatives. Please see the following for details;
Financial Markets Conduct (Small Co-operatives) Exemption Notice 2016 (LI 2016/310)
Schedule 1 Contents of disclosure document
Financial Markets Conduct (Small Co-operatives)
Exemption Notice 2016
Schedule 1 Disclosure document summary – from the Board of Otaki Energy Co-operative Ltd.
1. What is this?
This is an offer of Otaki Energy Co-operative Ltd (OECL), (trading as coastalenergy.nz) for shares that will give you a stake in the ownership of OECL.
You could receive a return reflecting the performance of OECL through dividends and rebates.
If OECL runs into financial difficulties and is wound up, you will be paid only after all creditors and holders of any preference shares have been paid. You may lose some or all of your investment. At this time no preference shares have been issued.
2. About OECL.
OECL is a fully community owned co-operative providing advice and installation of Solar power systems for small and large power consumers in the Kapiti and Horowhenua region.
3. Purpose of this offer
The purpose of this offer is to raise the funds necessary to complete a technical and financial feasibility study, prepare and register a fully detailed Product Disclosure Statement (PDS) that will be registered with the Financial Markets Conduct Authority (FMCA).
4. Key terms of the offer
The key terms of the offer are briefly summarised the following table, this is an offer for co-operative shares in OECL.
The offer is open from August 2019 and is restricted to no more than 50 shareholders of Transacting Shares and limited to not more than $5000 per shareholder, including Transacting and Supporting shares.
This offer will close when a total of 50 applications have been received.
With voting rights associated with the Transacting Share only this will represent 100% of the shares on offer.
There are no additional fees applicable on either share type.
|At the date of OECL accepting an application for shares, any liability is limited to any unpaid portion. There is no further liability. Transacting Shares||$365 per share Full Voting Rights||Only one share per person or entity is permitted. Does not receive dividends, but can receive rebates and discounts on purchases.|
|Supporting Shares||$1 per share No voting rights||Maximum purchase is limited to $5000 including one Transacting Share. Does receive dividends|