“Establishing a Community Interest Company: Cycle Roots CIC” Emma McNally and Phil Johnson, Directors of Cycle Roots CIC.
The Missing Link? See chapter 30 of Case et al., 2017
The e age e of so socia cial l enter erpris ise? e? 1) Limited companies have corporate personality if they are correctly incorporated: • Name • Address • One director and one shareholder • Memorandum of association • Articles of association
2) 2) Charit ities es • Minimum of three trustees who are legally responsible for the administration of the charity; to deliver ‘charitable purposes for the public benefit’ • A charitable incorporated organisation (CIO) to comply with company law (that prioritises the interests of shareholders) and charity law (that prioritises the interests of beneficiaries) • A charitable company limited by guarantee (CLG) • A charitable trust • An unincorporated association
3) 3) Co-operativ ive so socie ietie ies • Organisations that privileges its members who can own, administer and benefit from its operations. • “One -person, one- vote”. • Comply with the Co-operative and Community Benefit Societies Act 2014. • The Financial Conduct Authority (FCA) must be satisfied that its objects are wholly charitable or benevolent (s. 10).
4) 4) Regis ister ered so socie cieties es • Used to be an Industrial and Provident Society (IPS) until the term ‘registered society’ was brought in by the Co -operative and Community Benefit Societies Act 2014. • Community benefit societies aka. a ‘ Bencom ’.
5) 5) Community y inter erest com companie ies s (CIC) • Introduced by s.26 of the Companies (Audit, Investigations and Community Enterprise) Act 2004. • Unique incorporation rules such as: the articles of association must include a ‘community interest statement’ and an ‘asset lock’ is required. • Has to be approved by the Office of the Regulator of Community Interest Companies.
6) 6) Busin siness ss Partnership ips s and Sole e trader ers • Unlimited liability?
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