Whisky 1901 has a WOWGR licence and holds an account at bonded facilities. We have worked with our legal partners to create a bespoke bailment contract for our investors. The contract certifies that Whisky 1901 is managing the whisky cask on behalf of the investor, who is the legal owner. It creates a transparent and legally documented trail of ownership.
This is vital because it means that if anything ever happened to Whisky 1901, your cask would not fall into the company’s assets – it belongs to you, the investor.
It is not unusual for some brokers to provide their investors with a receipt and/or certificate of investment, but it is important to note that this doesn’t transfer ownership to the investor. In this situation, the broker is still the legal owner of the cask. If the firm were to encounter problems, you may struggle to retrieve your asset.
In contrast, Whisky 1901’s bailment contract is a common law agreement that protects investors. There are no costs to the investor and the contract carries the number of their cask and the signatures of both parties.
Investors should safeguard their contract in the same way they would look after a share certificate or property deed. In the event of it being lost or damaged, we keep a copy and another is lodged with our law firm.
Because Whisky 1901 holds the Delivery Order issued by the bonded warehouse or distillery, we are responsible for the storage fees and insurance costs attached to the cask. If investors have their own account and hold the Delivery Order in their own name, as is occasionally possible, these costs pass to the investor.