imutual.co.uk

Ditto.

Richard,

A few questions:

1. What in your opinion is now wrong with your original business plan that you now think it needs to be changed?

2. Apart from the accountancy bill, please explain what advantages are gained if you change the company structure and alternatively, again apart from the accountancy bill what would happen if you do not change the structure?

3. In the proposed articles for the proposed restructure: Item 22. Powers to issue different classes of share - why is it deemed necessary to have more than one class of share?

4. Am I correct in assuming that a members current share holding will be transferred across to the new proposed entity as the same balance?

Why was Imutual not set up as a private limited company from Day 1 ( 2010) thus saving figure that has been mentioned £6000 x 9 years ( Bearing in mind vast majority of income made not including Money Vista and Amazon purchases in earlier years has been direct result of paying 50% or less on free cashback offers most particularly travel searches that we have done)

So the extent of this proposal is: It's cheaper.

And then we carry on as we are?

I'm minded to vote against it just so to hear a proper case made for it. At the minute it feels like we're being asked to rubber-stamp our way into continued irrelevance.

I'm inclined to agree.

We have a resounding silence from the director to any questions about business development, about how the savings will be put to work, etc.

Vote cast in favour

What in your opinion is now wrong with your original business plan that you now think it needs to be changed?

We have not attracted the level of active members necessary to justify PLC status. We have, and can continue to have, protracted discussions on why this is the case, but whatever our future strategy I can't see the benefit of delaying the conversion to a private company. It doesn't preclude any future options (including becoming a cooperative or even resuming PLC status) but if we don't complete the change by the end of June that will be £6k+ less to spend on something.

Apart from the accountancy bill, please explain what advantages are gained if you change the company structure and alternatively, again apart from the accountancy bill what would happen if you do not change the structure?

Saving £6k+ a year is the main benefit. A PLC structure, and the obligations that come with it, is no longer appropriate and would be an unnecessary burden going forward.

Why was Imutual not set up as a private limited company from Day 1

On the basis of advice received, industry precedent and being consistent with the original ambitions of the concept, it seemed necessary at the time.

In the proposed articles for the proposed restructure: Item 22. Powers to issue different classes of share - why is it deemed necessary to have more than one class of share?

The proposed articles are actually taken from the standard set on the Companies House website. The only material changes to it are sections 21 and 48, to reflect how imutual operates. There is no intention to introduce any additional classes of share.

Am I correct in assuming that a members current share holding will be transferred across to the new proposed entity as the same balance?

Yes

The EGM seems to be an abject admission of defeat to the market place, a market place that is sat at home under lockdown clicking away on their internet connections but unaware of iMutuals existence because its organic growth process is an insufficient approach to marketing.

The EGM therefore is premature without an outline for future growth along with a clear marketing strategy and budget.

I propose that the addition of this commitment be added to the existing proposal - the requirement of a marketing budget and a clear agreed plan for growth as well as a marketing strategy - all to be outlined before closure of the voting period.

I support the thrust of what you are saying, but procedurally it's not possible to change the EGM motion or add a new one without calling a new meeting.

pabenny wrote: ↑

Sun May 10 2020 7:20pm

I support the thrust of what you are saying, but procedurally it's not possible to change the EGM motion or add a new one without calling a new meeting.

If not an addition to the existing EGM, I would like to see a written statement and above all a commitment from management to an outline for future growth with a timetable, along with a clear marketing strategy and budget before I vote for the proposal put forward embodied in the EGM

The "fingers crossed" organic growth policy so far adopted by iMutual would be nice if it had worked but that policy can clearly not be relied upon and must be seen as a possible supplement to some future core policy. Going forward we should have a more formal planned and well financed (if necessary) policy, as opposed to the sole path ahead being so unorganised and less controllable. My own thoughts, and I have said before (so don't want to bore those who get bored too easily) that we have a great story to tell to the market place and I believe that should be embodied around the coming 10 Millionth Transaction...!