Frequently asked questions
Q: What will happen to money invested in Rootstock?
A: Some of the money will be kept in bank and building society accounts, available to repay investors. Rootstock will only use accounts with banks and building societies with ethical policies, such as Triodos Bank, the Co-operative Bank and the Ecology Building Society. The rest will initially be invested in Radical Routes Ltd in the form of withdrawable shares. Radical Routes will then be able to continue its work of making loans to member co-operatives, as it has successfully done since 1991.
Q: Why are loans to co-ops made via Radical Routes?
A: Whenever a loan is made, there is an element of risk. Radical Routes has experienced a very low failure rate. Furthermore, Radical Routes has built up reserves of over £40,000 which would help to cushion any future losses. By investing through Radical Routes, Rootstock is minimising any risk.
Q: Will I receive interest on my investment?
A: Rootstock is allowed to pay limited interest, sufficient to "obtain and retain capital to fulfil [its] objects". Normally interest will be paid in the form of additional withdrawable shares. These can be cashed in at any time (subject to the usual withdrawal conditions and notice) or left with Rootstock to generate interest themselves. Investors are invited to forgo their right to interest, or to ask for only half of the normal level of interest, as a way of further supporting Rootstock and the Radical Roots network. Please contact us for the current rate of interest.
Q: Do I need to pay tax on any interest I receive?
A: Yes. If you are a UK resident, your interest will be paid gross, and it is your responsibility to pay any tax due on the interest. Non-UK residents will have tax deducted from interest. We must send in returns to the Inland Revenue of anyone receiving gross interest greater than an amount specified by law (curently £250 in any one year).
Q: What benefits are there to being a member of Rootstock (besides interest on shares)?
A: Members are entitled to attend general meeting and the AGM, at which the committee is elected (see below). At these meeting each member has one vote irrespective of the number of shares they hold. Members are entitled to a copy of Rootstock's Rules and will receive our Investors' Newsletter twice a year.