Community shares give community businesses additional solvency, compared with other businesses that are more reliant on debt finance. Your community and your members have a vested interest in the purpose of their societies, and will support measures to protect its employees, volunteers, assets and share capital.
The purpose of this guidance is to support societies to use community shares to improve their solvency as part of their response and recovery to the current COVID-19 crisis.
Co-operatives UK has infomation on how insolvency reforms could help co-ops survive crisis. The sister guidance note to this Recovery Share Offer guidance is Guidance for societies facing financial strife.