SyndicateRoom operates a nominee structure. This means we group together all individual investments under a single nominee, greatly easing the administrative burden for both you and the companies that raise finance on SyndicateRoom.
This means that each company has only one legal shareholder to represent all platform investments (SyndicateRoom Nominees Ltd). Any investment by Fund Twenty8 is transacted separately and treated as an independent investment.
In practice, the nominee focuses the flow of communication between investors and the companies they have invested in, resulting in a faster and more efficient process.
How does it work?
Very simply: it acts as a go-between for you and the companies you invest in, easing the administrative burden. The nominee is the legal owner of your investments, but you remain the beneficial owner and retain full economic rights to your shares. This arrangement is created at the point when you decide to invest.
The Nominee will take care of all communications surrounding the closure of SyndicateRoom investment monies and (S)EIS documentation for the SyndicateRoom investors (the underlying, beneficial shareholders). We'll also handle all ongoing actions between the company and SyndicateRoom investors regarding, for example, pre-emption raises and shareholder voting, for the life of your investment.
In the unlikely event that SyndicateRoom or the nominee service provider cease trading, shares held by the nominee will be transferred to you as the beneficial owner and you will then become the direct shareholder; alternatively you can instruct that the shares are transferred to a replacement nominee of your choice.
SEIS and EIS certificates
The SyndicateRoom nominee keeps share certificates on your behalf and arranges SEIS and EIS certificates, so neither you nor the company you've invested in have to worry about burdensome paperwork. You still receive a confirmation of your investment as well as your SEIS and EIS certificates to keep hold of.
Importantly, the SyndicateRoom nominee does not make voting or other decisions on your behalf. Instead, it collects votes or decisions from the investors and passes these on to the company. You are not prevented from attending company meetings such as AGMs.
SyndicateRoom will provide any company updates and an annual review of all your investments.
The SyndicateRoom nominee will administer your investment in the case of dividend payments or an exit.
There are no upfront or ongoing fees for investors – you keep any profits from your investments.