Quote:
Originally Posted by Phils-an-alki
"Furthermore, the fact the potential investor must then make a 5k payment to facilitate a second meeting and provide a business plan and proof of funding, but the Society board still has the right to end the process at this stage without disclosing the detail to the membership is unlikely to encourage credible investors to pursue the process to
this stage. There are good and bad investors out there, my contention is that whilst this process is rightly designed to discourage those whose intentions could be harmful, it’s actually too restrictive and is actually discouraging even those with positive intentions."
There it is.
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Few things come to mind.
An NDA for £2k is peanuts even for a chancer. £50k might be too high for some genuine "investors"
£20k seems a fair figure but it's not going to change at this meeting.
A groundswell of opinion might encourage the board to rethink the basic terms of this part of the process.
The fact that the club can stop the process without disclosing the details to the membership, suggests that the NDA is a 2 way thing. Whether the penalty works both ways is debatable.
It doesn't prevent the club from informing the membership that there had been an approach.
Secondly. £5k is not to set up a second meeting, it's to protect the club from the cost of due diligence. A £5k deposit to carry out due diligence is not an onerous figure and is a realistic amount for employing the accountants etc to fully investigate the proposals and the proposer.
Finally. If Bryn's contact was serious about "investing" and had been put off by the terms, it would not have been unreasonable for them to have gone public about their offer.