Share Finance is a process whereby investors have the chance to invest in a privately held company in return for acquiring a shareholding in that company. Such shareholdings may generate returns in the form of dividends or if the company is sold at a higher value than it was valued, when you made your investment.
When you decide to use share finance to invest in a business on TFGcrowd, in return for your investment you will get shares in that company. Your shares will be held by the TFGcrowd nominee.
Depending on the amount you invest and the number of shares issued during the funding round, you will be allocated a percentage share of ownership in the business.
No, there are no fees payable for investing in shares.
The shares owned by you will be issued to and held by the TFGcrowd nominee. This will mean that the legal holder of your shares will be the nominee. Communication between the company and the shareholders will therefore mainly be conducted through the nominee company, but in some cases, the company may provide updates to you directly. The nominee company will hold your shares on trust for you, safeguarding your rights and entitlements.
Depending on the pitch, your shares may or may not hold voting rights. You should carefully check this information in project details before deciding to make an investment.
Yes, you may sell or transfer the title to your shares to any active TFGcrowd user by informing the nominee company and providing them with their requested information. Currently, there is no secondary market, though, so you will need to find the buyer yourself. Any renumeration for the sale of shares should be agreed and carried out directly between you and the buyer.
Anyone wishing to sell their shares may extend their offers to the nominee, which at its own discretion may choose to accept or reject any given offers. The nominee has no obligation to buy any shares offered to them for sale.
Companies may or may not decide to pay dividends to their shareholders. If a dividend is paid, this will be transferred to your TFGcrowd account from the nominee company.
Any proceeds from the sale of the company attributable to your shares will be transferred to your TFGcrowd account from the nominee company.