Share Ownership in our Art Collection
We have made an initial investment in an Art Collection that will be on display in the club.
As an additional benefit to the first 250 members joining the club, they will receive 1 non-voting ordinary share in GTC Private Collection Limited that owns the art collection. In the event of joint membership, the shares will be awarded to the primary member.
GTC Private Collection Limited is a company incorporated in the UK with issued share capital of 250 ordinary shares of £1 each and 250 non-voting ordinary shares of £1 each.
The ordinary shares have full voting rights and are entitled to receive distributions, whereas the non-voting ordinary shares are just entitled to receive distributions. Distribution entitlements are the same for ordinary shares and non-voting ordinary shares.
The Club owns 100% of the issued ordinary share capital of GTC Private Collection Limited (250 shares) and the new members will own 100% of the issued non-voting ordinary shares (up to 250 shares).
Initially, when the first 250 members have been issued their non-voting ordinary share, their economic interest in the art collection will represent 50% of the overall value of the collection.
Committee members will receive lifetime complementary membership to the club unless revoked for any reason by the board. The maximum number of committee members will be 50 people.
To participate in this share ownership scheme, committee members will have the following options;
- Accept the shares in consideration of their services to the Committee which shall be set at the market value at the time of issue.
- Participate in the ownership of the art collection by paying the market value for the shares;
- Choose not to participate in this scheme.
The receipt of the shares usually carries personal tax consequences. All Committee members are advised to obtain professional advice before making their election in accordance with the above. The company does not provide investment advice and all guidance provided is for general information purposes only. The company shall have no liability under any circumstances to a committee member as a consequence of any tax liabilities or financial losses suffered by any member as a result of participation in the scheme.
Participation of the maximum of 50 committee members in this scheme results in just the first 200 paying founder members participating in share ownership of the art collection.
If at any stage a founder member ceases to be a member of the club, the shares will be automatically transferred back to GTC Private Collection Limited for nil consideration.
Each participating member is required to sign an undated stock transfer form upon joining that is held on file until their departure.
The company has the right to acquire additional art to add to the collection. Where there is no portfolio value gains with can be repurposed for further investment, then new ordinary shares may be issued accordingly. The company has the right to add additional art and issue further non-voting ordinary shares at its discretion. The company also has the right to issue new classes of non-voting shares to new members. This may result in the dilution of existing members of the scheme.
A Committee/Board will adjudicate on all decisions related to the art portfolio, which shall be final.
It is the club’s objective to generate revenue streams to fund the costs associated with running the art portfolio, any operating deficits will be paid for out of realisations of the art prior to any distributions to shareholders. The club maymake short term loans available to the collection where liquidity does not exist to make these payments.
The art collection is insured, and appropriate governance, security and safeguarding measures associated with the collection is in place.
A founder member may sell their share to another existing member at any time at or above the current valuation price presiding. Any stamp duty payable, and other potential tax liabilities, on the sale of the share is the responsibility of the seller. Members should seek their own tax advise accordingly.
Non-voting shares cannot be sold to a non-member. Any sale to a non-member will be deemed null and void and could result in membership being withdrawn.
Rules regarding the purchase of a piece of art by a member from the collection are set out within our investment mandate which is located within the members portal.