Members
Introduction
Farmway was established on the 1st December 1964 with the amalgamation of three farmer co-operatives, Northern Farmers, Teesside Farmers and East Yorkshire Farmers.
The administration of the Membership records is the responsibility of the Company’s Shares Department which is part of the Business Support Unit based at our Piercebridge site. The Shares department deals with all of the queries raised by members regarding their membership of Farmway. In general terms the nature of the queries raised relate to specific areas. Therefore in order to assist our existing Members and potential Members we are now taking the opportunity to list below the most frequently asked questions together with the relevant answers.
However, if you have any specific questions about being a Member of Farmway or need further clarification on any of the points raised below please contact the Shares Department at Farmway Limited, Cock Lane, Piercebridge, Co. Durham, DL2 3TJ or telephone on 01325 504600 or send an email to shares@farmway.co.uk. In all correspondence regarding your shares would you please quote your Membership number.
Frequently Asked Questions
Q How do I become a Member of Farmway?
A To become a member of Farmway you will need to be actively involved in agriculture and operating within the company’s geographical trading territory which covers from the Humber to the Scottish borders and to the east of the Pennines.
If you match the above criteria and wish to become a Member then all you need to do is either
1) Contact the Companys’ Share Department at its Registered Office
Farmway Trading Limited, Cock Lane, Piercebridge, Co. Durham DL2 3TJ. Telephone (01325) 504600
2) Contact your local Farmway branch
3) Contact a Farmway Sales Representative.
In all instances you will asked to complete an Application which needs to be sent to the Companys’ Registered Office together with a cheque for £150 (which is the minimum investment)
Once your Application Form and cheque have been received your application will then be considered by the Company’s Board of Directors at the next Board Meeting immediately following the receipt of your letter. You will then receive a letter informing you of the Board’s decision. If your application has been successful your name will then be entered in the Company’s Register of Members. You will then receive a share certificate confirming your shareholding in the Company.
Q What is the minimum and maximum sums I can invest in Farmway?
A The minimum shareholding in Farmway is £150 and the maximum is set by the Industrial and Provident Society Act at £20,000. Any member who has more than £20,000 invested in the Company will have the excess over £20,000 treated as an “A” Loan given to the Company and not classified as Share Capital
Q How much Interest will I be paid?
A Interest is paid each year on the value of your investment in Farmway. For the past few years the interest rate payable has been set at 3.50% (Gross)
Once the Board have set the interest rate Members can elect to receive their Gross Interest payment instead of having it added to their share account. Details of how to request the withdrawl of interest are contained in the Company’s Annual Report
Q Who decides the amount of interest paid?
A The Gross Rate of Interest to be paid is proposed by the Board of Directors , this usually occurs at the February Board meeting at which the Auditor presents the Company’s Annual Accounts relating to the financial year which ended on the previous 30th November to the Board. The Board then review the accounts and then if appropriate they will approve them. In addition when the Board review the financial performance of the Company they will also make a recommendation of the Interest Rate to be paid for that year. This recommendation has to be approved at the Company’s Annual General Meeting which takes place at the end of March.
Q Will I have to pay Tax on this Interest?
A Yes. The interest paid on your shareholding irrespective of whether it has been paid directly to yourself or added to your shareholding is subject to UK Income Tax.and needs to be declared on your Tax Return. The Annual Members Statement you receive should be retained and passed on to the person looking after your Tax affairs.
Q Can I add the Interest payment to my Capital account?
A Following the approval of the Company’s Annual Report and Accounts and the Interest rate to be paid by the Annual General Meeting, the Company’s Annual accounts are sent to each member. The Directors Report, contained within the Company’s Annual Report and Accounts, informs each Member that the Interest payment will be automatically applied to their shareholding account unless the Member has elected to have the interest paid directly to him, by a specific deadline date.
Q When will I receive my Interest payment?
A Following the Company’s Annual General Meeting at the end of March and the approval of the Interest rate payable, members who have elected to be paid their interest will receive their payments during May
Q How will my Interest payment be paid to me?
A Members who have elected to be paid their interest will receive a cheque payment .Some members have asked to have these payments paid directly into their Bank Account. Any member who would prefer to have their interest paid directly into their bank account please write to the Shares Department at Cock Lane, Piercebridge, Co. Durham DL2 3TJ quoting their Membership Number and details of their designated bank account
Q How do I know how much I have invested in the Company?
A In May each year you will be sent a statement showing your investment in the company . The statement will also show the balance on your account at the start of the financial year, any interest which has been credited to your account during the year as well as any interest payments made to you.
Q Can I transfer my shares to someone else?
A If you retire and transfer your business to another person and they are continuing the same type of work (eg You transfer the farm to your children) you can write to the Company enclosing your share certificate requesting that the ownership of your shares be transferred to that person. Once again this request has to be considered by the Board of Directors at their regular meetings. Shortly after the meeting you will be informed whether the Board have agreed to the transfer or not.
Q Can I redeem my shares?
A The shares in the Company may be redeemed under the following circumstances:
1) If you have retired from working within the agricultural sector, you can write to the Company explaining your change of circumstances and enclosing your share certificate.
2) Upon the death of a member the legal representatives of the member’s estate can apply in writing to the company for the repayment of the shares and enclosing the deceased member’s share certificate as well as a copy of the member,s death certificate.
It should borne in mind that the nominal face value of the Farmway shares will always remain unchanged at £1 whilst Farmway continues trading. The redemption value of your share account relates to the nominal value of the shareholding together with the total of all Interest that has been retained on your share account.
All applications for share redemption must be made in writing and sent to Farmway Limited, Cock Lane, Pierecbridge, Co. Durham DL2 3TJ. The Board of Directors will consider the request and if they are satisfied with the circumstances they will approve the repayment of the member’s shareholding.
Q I have lost my share certificate, What do I do?
A When you became a member you were provided with a membership letter showing your membership number and value of shareholding.
If however you have lost or misplaced this certificate then you will need to contact the Shares Department to request an indemnity form This Indemnity form will act as a record of your shareholding in the Company.
In addition if you wish to redeem your shares or transfer them to someone else you will need to send in your share certificate. Once again if you have lost or misplaced this certificate then you will need to contact the Shares Department to request an indemnity form. This form will be sent to you and will need to be completed and returned to the Shares Department in order for you to continue with your request.
Q Who do I contact to discuss my Membership?
A If you have any queries regarding your shareholding or membership you can either write to the Share Department at Farmway Limited, Cock Lane, Piercebridge, Co. Durham, DL2 3TJ or telephone on 01325 504600 or send an email to shares@farmway.co.uk
