<PAGE>
Securities and Exchange Commission, Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
Original Filing
COMMUNITY BANCSHARES, INC.
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
203434105
(CUSIP Number)
RONALD S. SHOEMAKER
1600 CURTIS BRIDGE ROAD
WILKESBORO, NORTH CAROLINA 28697
(336) 903-0610
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
February 14, 1998
(Date of Event Which Requires Filing of This Statement)
_______________________________________________________________________________
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box. [ ]
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would after
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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______________________________________________________________________________
______________________________________________________________________________
CUSIP No. 203434105
______________________________________________________________________________
(1) Names of reporting persons and |
S. S. or I.R.S. Identification Nos. | Edward Greene
of above persons. |
______________________________________________________________________________
(2) Check the appropriate box if a | Box A: [ X ]
member of a group. | Box B: [ ]
(see instructions) |
______________________________________________________________________________
(3) SEC use only........................ |
______________________________________________________________________________
(4) Source of funds (see instructions). | BK, WC, PF, OO
______________________________________________________________________________
(5) Check if disclosure of legal |
proceedings is required pursuant | YES[ ] NO[ X ]
to Items 2(d) or 2(e). |
______________________________________________________________________________
(6) Citizenship or place of organization. | North Carolina, United States
______________________________________________________________________________
Number of shares beneficially owned by |
each reporting person with: |
(7) Sole voting power.................. | 274,626
|
(8) Shared voting power................ | 1,600
|
(9) Sole dispositive power............ | 274,626
|
(10) Shared dispositive power.......... | 1,600
______________________________________________________________________________
(11) Aggregate amount beneficially |
owned by each reporting person. | 276,226
______________________________________________________________________________
(12) Check if the aggregate amount |
in Row (11) excludes certain shares | YES[ ] NO[ X ]
(see instructions). |
______________________________________________________________________________
(13) Percent of class represented by |
amount in Row (11). | 21.4%
______________________________________________________________________________
(14) Type of reporting person (see |
instructions). | IN
______________________________________________________________________________
<PAGE>
______________________________________________________________________________
______________________________________________________________________________
CUSIP No. 203434105
______________________________________________________________________________
(1) Names of reporting persons and |
S. S. or I.R.S. Identification Nos. | Joe Severt
of above persons. |
______________________________________________________________________________
(2) Check the appropriate box if a | Box A: [ X ]
member of a group. | Box B: [ ]
(see instructions) |
______________________________________________________________________________
(3) SEC use only........................ |
______________________________________________________________________________
(4) Source of funds (see instructions). | BK, WC, PF, OO
______________________________________________________________________________
(5) Check if disclosure of legal |
proceedings is required pursuant | YES[ ] NO[ X ]
to Items 2(d) or 2(e). |
______________________________________________________________________________
(6) Citizenship or place of organization. | Virginia, United States
______________________________________________________________________________
Number of shares beneficially owned by |
each reporting person with: |
(7) Sole voting power.................. | 277,176
|
(8) Shared voting power................ | 1,600
|
(9) Sole dispositive power............. | 277,176
|
(10) Shared dispositive power........... | 1600
______________________________________________________________________________
(11) Aggregate amount beneficially |
owned by each reporting person. | 278,776
______________________________________________________________________________
(12) Check if the aggregate amount |
in Row (11) excludes certain shares | YES[ ] NO[ X ]
(see instructions). |
______________________________________________________________________________
(13) Percent of class represented by |
amount in Row (11). | 21.7%
______________________________________________________________________________
(14) Type of reporting person (see |
instructions). | IN
______________________________________________________________________________
<PAGE>
______________________________________________________________________________
______________________________________________________________________________
CUSIP No.203434105
______________________________________________________________________________
(1) Names of reporting persons and |
S. S. or I.R.S. Identification Nos. | Stephen Greene
of above persons. |
______________________________________________________________________________
(2) Check the appropriate box if a | Box A: [ X ]
member of a group. | Box B: [ ]
(see instructions) |
______________________________________________________________________________
(3) SEC use only....................... |
______________________________________________________________________________
(4) Source of funds (see instructions). | BK, WC, PF, OO
______________________________________________________________________________
(5) Check if disclosure of legal |
proceedings is required pursuant | YES[ ] NO[ X ]
to Items 2(d) or 2(e). |
______________________________________________________________________________
(6) Citizenship or place of organization. | North Carolina, United States
______________________________________________________________________________
Number of shares beneficially owned by |
each reporting person with: |
(7) Sole voting power.................. | 133,726
|
(8) Shared voting power................ | 0
|
(9) Sole dispositive power............. | 133,726
|
(10) Shared dispositive power........... | 0
______________________________________________________________________________
(11) Aggregate amount beneficially |
owned by each reporting person. | 133, 726
______________________________________________________________________________
(12) Check if the aggregate amount |
in Row (11) excludes certain shares | YES[ ] NO[ X ]
(see instructions). |
______________________________________________________________________________
(13) Percent of class represented by |
amount in Row (11). | 10.4%
______________________________________________________________________________
(14) Type of reporting person (see |
instructions). | IN
______________________________________________________________________________
<PAGE>
STATEMENT PROVIDED ACCORDING TO GUIDELINES CONTAINED
WITHIN SCHEDULE 13D (17 C.F.R. Section 240.13d1-101)
Item 1. Security and Issuer
The class of equity securities this statement relates to is the common
stock issued by Community BancShares, Inc. Community BancShares, Inc. is
located at 1600 Curtis Bridge Road, Wilkesboro, North Carolina, 28697.
Item 2. Identity and Background: The following disclosures under this item
fulfill the requirements of Schedule 13d for the following individuals: Edward
Greene, Joe Severt, Stephen Greene
EDWARD GREENE
(a) Edward Greene
(b) 216 Fairway Lane
Wilkesboro, NC 28697
(c) Edward Greene is a retired former executive with Lowe's Companies,
Inc. Currently, he is an investor along with Joe Severt in Severt &
Greene, Inc., a corporation which invests in various business
opportunities in North and South Carolina. Severt & Greene has a
nominal investment in Cyberspace, Inc., an amusement arcade in North
Wilkesboro, North Carolina; a partial interest in Auto Finance, Inc.,
a used car dealership in Forsyth County, North Carolina; provides
capital for the construction of residential housing in South Carolina;
and has an interest in Invinca-Shield of North Carolina, Inc., an
automobile accessory company. There is currently no permanent address
for Severt & Greene Inc., and correspondence for the company is
received at the law offices of McElwee & McElwee, 906 Main Street,
North Wilkesboro, North Carolina 28659. In addition, Edward Greene
has a substantial portfolio of various stocks, bonds, and investments
from which he derives income and substantial real estate holdings
which he leases out to both residential and commercial lessors. He is
currently a member of the Board of Directors of the Issuer.
(d) During the last five years, Edward Greene has not been convicted in a
criminal proceeding.
(e) During the last five years, Edward Greene was not a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction concerning federal or state securities laws resulting in
said body ruling or mandating a certain course of action or inaction
on his part.
(f) Edward Greene is a resident of North Carolina and a citizen of the
United States.
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JOE SEVERT
(a) Joe Severt
(b) 7326 Sunnybrook Drive
Roanoke, Virginia 24019
(c) Joe Severt is a retired former executive with Lowe's Companies, Inc.
Currently, he is an investor along with Edward Greene in Severt &
Greene, Inc., a corporation which invests in various business
opportunities in North and South Carolina. Severt & Greene has a
nominal investment in Cyberspace, Inc., an amusement arcade in North
Wilkesboro, North Carolina; a partial interest in Auto Finance, Inc.,
a used car dealership in Forsyth County, North Carolina; provides
capital for the construction of residential housing in South Carolina;
and has an interest in Invinca-Shield of North Carolina, Inc., an
automobile accessory company. There is currently no permanent address
for Severt & Greene Inc., and correspondence for the company is
received at the law offices of McElwee & McElwee, 906 Main Street,
North Wilkesboro, North Carolina 28659. In addition, Joe Severt has a
substantial portfolio of various stocks, bonds, and investments from
which he derives income. He is currently a member of the Board of
Directors of the Issuer.
(d) During the last five years, Joe Severt has not been convicted in a
criminal proceeding.
(e) During the last five years, Joe Severt was not a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction concerning federal or state securities laws resulting in
said body ruling or mandating a certain course of action or inaction
on his part.
(f) Joe Severt is a resident of Virginia and a citizen of the United
States.
STEPHEN GREENE
(a) Stephen Greene
(b) P.O.Box 1943
North Wilkesboro, North Carolina 28659
(c) Stephen Greene has been a insurance broker with the Thompson Financial
Group since 1987. In addition, he has been an insurance broker with
the Thompson Financial Group since 1987 and Vice President of Severt
& Greene, Inc. since 1996. Severt & Greene, Inc. is a corporation
which invests in various business opportunities in North and South
Carolina. Severt & Greene has a nominal investment in Cyberspace,
Inc., an amusement arcade in North
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Wilkesboro, North Carolina; a partial interest in Auto Finance, Inc.,
a used car dealership in Forsyth County, North Carolina; provides
capital for the construction of residential housing in South Carolina;
and has an interest in Invinca-Shield of North Carolina, Inc., an
automobile accessory company. There is currently no permanent address
for Severt & Greene Inc., and correspondence for the company is
received at the law offices of McElwee & McElwee, 906 Main Street,
North Wilkesboro, North Carolina 28659. His business address with
regard to Thompson Financial Group is that delineated in item (b)
directly above this item. He is currently a member of the Board of
Directors of the Issuer.
(d) During the last five years, Stephen Greene has not been convicted in
a criminal proceeding.
(e) During the last five years, Stephen Greene was not a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction concerning federal or state securities laws resulting in
said body ruling or mandating a certain course of action or inaction
on his part.
(f) Stephen Greene is a resident of North Carolina and a citizen of the
United States.
Item 3. Source and Amount of Funds or Other Consideration
The funds to be used in gaining voting rights of the stock in question
will be supplied by Edward Greene, Joe Severt, and Stephen Greene from their
personal funds and assets including stock, bonds, income from various rental
properties, and savings accounts.
Item 4. Purpose of Transaction
(a) This section is not applicable to any of the reporting persons.
(b) There is a slight possibility of a merger with First Community
Bankshares, Inc. of West Virginia if the filing persons manage to gain
a majority interest on the Board of Directors of the Issuer, and is
mentioned only in the interest of full disclosure of events which have
a possibility of occurring but are by no means certain.
(c) This section is not applicable to any of the reporting persons.
(d) Due to disputes over how to most effectively manage the affairs of the
Issuer and displeasure with the current returns on their investments
with the Issuer, Edward Greene, Joe Severt, and Stephen Greene plan to
acquire control of the Board of Directors of Community BancShares,
Inc. via the election of Directors at the next Annual Meeting of the
Issuer. They are preparing to engage in a proxy contest against
current management of Community BancShares, Inc. in an effort to gain
said control. There are four Directors up for reelection and
acquisition of those seats would enable the aforementioned individuals
to gain the majority interest on
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the Board. Therefore, they foresee it as quite likely that over the
course of the Spring of 1998, they will be acquiring beneficial
ownership in a material percentage of the common stock of the issuer
through the acquisition of proxies from other shareholders, the
creation of voting trusts, and the execution of voting/pooling
agreements.
(e) This section is not applicable to any of the reporting persons.
(f) This section is not applicable to any of the reporting persons.
(g) This section is not applicable to any of the reporting persons.
(h) This section is not applicable to any of the reporting persons.
(i) This section is not applicable to any of the reporting persons.
(j) This section is not applicable to any of the reporting persons.
Item 5. Interest in Securities of the Issuer
(a)
<TABLE>
<CAPTION>
Reporting Person Common Stock Warrants(1) Options(2) % of Class per RP
- ---------------- ------------ ----------- ---------- -----------------
<S> <C> <C> <C> <C>
Edward Greene(3) 206,000 62,226 8,000 21.4%
Joe Severt(4) 208,550 62,226 8,000 21.7%
Stephen Greene 63,500 62,226 8,000 10.4%
</TABLE>
(1) These are presently exercisable stock purchase warrants granted in
connection with the initial stock offering of Community BancShares,
Inc.
(2) These amounts represent presently exercisable stock options granted in
blocks of 2000 per year as annual compensation to members of the Board
of Directors of Community BancShares, Inc.
(3) This amount includes 1600 shares held by Severt & Greene, Inc., a
company in which Edward Greene has a 50% interest.
(4) This amount includes 1600 shares held by Severt & Greene, Inc., a
company in which Joe Severt has a 50% interest.
(b) Edward Greene, Joe Severt, and Stephen Greene all have the sole power
to vote or direct the vote of the shares which they beneficially own,
with the exception of the 1600 shares owned by Severt & Greene, Inc.
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(c) Edward Greene, Joe Severt, and Stephen Greene have not taken part in
any transactions involving the common stock of Community BancShares,
Inc. in the past sixty days.
(d) There is no person other than Edward Greene, Joe Severt, and Stephen
Greene who has the right to receive or direct the dividends from, or
the proceeds from the sale of, the aforementioned holdings of common
stock issued by Community BancShares, Inc. owned by each of those
individuals, with the exception of Severt & Greene, Inc which owns and
may receive the proceeds of 1600 shares.
(e) This section is not applicable to any of the reporting persons.
Item 6. Contracts, Arrangements, Understandings, or Relationships With Respect
to Securities of the Issuer.
The reporting persons, Edward Greene, Joe Severt, and Stephen Greene, have
agreed that at the Annual Meeting of the Issuer, which will tentatively take
place during the latter half of the month of May, they will all vote for the
same slate of individuals for election to the Board of Directors of the Issuer.
To this end, they have begun to make preparations for an anticipated proxy
contest with the current management of the Issuer for control of the Board of
Directors. The decision to band together came about due to a perceived lack of
proper management and poor decisions on the part of the majority of the current
Board of Directors of the Issuer.
Item 7. Material to be Filed as Exhibits.
At this time there are no documents which would qualify for inclusion as
exhibits under this instruction as relating to the responses to Items (3), (4),
and (6). This is due primarily to the fact that there have been no concrete
steps taken towards developing proxy materials for the anticipated contest and
that the understanding among the reporting persons has been only expressed
orally up to this point.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete, and
correct.
This the 11th day of February, 1998.
/s/ Edward Greene
- ------------------
Edward Greene
/s/ Joe Severt
- ------------------
Joe Severt
/s/ Stephen Greene
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Stephen Greene
