Crowdcube request to change Investor Nominee Terms


#22

See this is why i dislike nominee accounts - why can’t i hold my shares direct with Monzo?

Beaufort securities anyone?


(Brad) #23

I also received this email and have had a skim through the new terms. They appear to hand all investor rights over to Crowdcube Capital Limited to act on behalf of the investors as a whole rather than individual investors retaining their rights.

My two main concerns are that this appears to give Crowdcube the authority to sell the shares on our behalf if they “deem it to be in the best interests of crowdfunding investors as a whole” and the part about them being able to charge us fees for providing this service, without setting out the actual fees involved. There does not seem to be any real benefit to the actual investors, only to Monzo.

Unless someone can provide some clarity on these points I will most likely be voting no.


#24

I can’t comment on the relative merits of the old and new terms, but it should be pointed out that this applies to shares acquired in the first 3 rounds, and not the latest round (2018) - where shares are already subject to the new terms.


(Angelos Kyratzakos) #25

On article 4 paragraph A, says that we have back-to-back obligations and on paragraph C says that we need to indemnify Crowdcube, Nominee etc for

all claims, actions, proceedings, demands, damages, liabilities, losses, settlements, judgements, costs and expenses (including reasonable legal expenses)

:confused: I am not sure if it is in our best interest these new Nominee terms


(Peter Collier) #26

Do anyone of our fellow investors have a legal background to help break this down for us? I’m skeptical to rely on the summary provided and having an objective, independent, view on this would be useful.

I’m also unsure who is asking for this, Monzo or Crowdcube?

Can a representative from Monzo please clarify their position on this?


(Richard) #27

Haven’t received any email from them…


#28

I think whatever the new terms mean, it will be serving crowdcubes interest.
https://uk.trustpilot.com/review/www.crowdcube.com
They aren’t the best reputed company, I’m surprised monzo would get in bed with them


(Alex Barrett) #29

I haven’t got an email, is it just me and Chimpofdoom left out?


#30

I’ve always hated the fact that Crowdcube are nominees for my Monzo shares - right from day 1.

I have a love-hate relationship with Crowdcube, without them i wouldn’t have invested in Monzo but they clearly do not do due diligence or are complicit (careful there) - just look at some of the beauties, Sugru raised millions telling the world how wonderful they were and how well funded they were and then less than a year after crowdfunding BAM! all investor money gone - and nothing from Crowdcube.

It’s the one thing that makes me nervous about Monzo - who holds my shares.


(Angelos Kyratzakos) #31

if you invested at the last round, this one does not apply to you, because your terms are these ones.

investors in the latest Monzo crowdfunding campaign are on these terms


(Samuel Parkinson) #32

The email is titled “Monzo Vote”. It doesn’t contain any information, but provides a unique link to the vote page with all the information detailed in Crowdcube request to change Investor Nominee Terms.


(Samuel Parkinson) #34

I have recently invested into another company via Crowdcube and saw the following note about holding shares directly in the legal review document provided before the investment is finalised.

Warranty: If they complete their investments, all investors whose investments are reflected on the Pitch progress bar will pay the same share price and receive the same share class.

Disclosure: Some of the investors who have invested via the Crowdcube
website cannot hold shares under the Nominee and will
therefore hold shares directly.

So it is possible to invest via Crowdcube and hold shares directly, but it’s not clear under what situations.


(Dan) #35

My guess is that Monzo isn’t involved with this and probably hasn’t even been warned that Crowdcube are asking for this vote.

The agreement reads to me like it’s completely detached from Monzo and only involves the Nominee and Crowdcube Capital Ltd


#36

I wasn’t aware that Crowdcube could sell off our shares to cover their own fraud etc. I don’t recall agreeing to that :face_with_raised_eyebrow:

Very disturbing, especially as I feel Crowdcube are a very high risk company and I’d never touch them with a barge pole as an investment, yet if they do turn out to be rotten to the core then I’ve inadvertently agreed for them to take my money and sail off into the sunset with it.


#37

No I haven’t got it either. Sounds very dodgy.


(Jon ) #38

First post here so not sure if im doing it right…

Anyway, i get that all banks, companies share dealers use nominee accounts and basically how they work but what I’d like to know is if i agree to this, will i be able to request a share certificate from crowdcube for all my shares removing the third party risk (crowdcube)? then if Monzo does an IPO i can transfer my shares easily with the certificate to my current broker.


#39

I wonder is Crowdcube will let a independent party audit the results, I know in the past it’s been a NO. I also wonder if they’ll send more than one email, perhaps back it up with a letter in case their email ends up in SPAM :thinking:


(James) #40

I read the Crowdcube email a few times and still not really clear on what they are asking us to vote for.

Quite concerning to see them try and change the terms we invested on at this stage if it’s going to open us up to liability…


#41

If I’ve read it correctly, it sounds like the email was only sent to people who invested before the latest raise.

If those people decide to vote FOR this change, then it will affect EVERYONE moving forward.

The only reason I can think of for doing it this way was that there were too many people who invested in the latest round to ask… But that’s scrapping the barrel for a reason to be honest.


#42

Ahhh I see. That sounds clearer. Thank you.