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?