How are community interest companies regulated?
8 Reduced governance requirements While CICs are regulated by the CIC Regulator, this is comparatively ‘light touch’, with the main requirement being the submission of the annual Community Interest Report.
Who governs CIC?
Office of the Regulator of Community Interest Companies
The Office of the Regulator of Community Interest Companies decides whether an organisation is eligible to become, or continue to be, a community interest company (CIC). It is responsible for investigating complaints – taking action if necessary – and it provides guidance and assistance to help people set up CICs.
How is a CIC governed?
A charity can convert to a CIC with the consent of the Charity Commission. A charity may own a CIC, in which case the CIC would be permitted to pass assets to the charity. CICs are more lightly regulated than charities but do not have the benefit of charitable status, even if their objects are entirely charitable.
Who are the stakeholders of a CIC?
Like all other companies CICs will have a number of stakeholders such as members, directors, employees, customers etc, but it is an important principle that a CIC should have particular regard to its major stakeholder i.e. the community, which is intended to benefit from its activities.
How are community interest companies funded?
CLGs usually raise funds through grants or donations, rather than from shareholders. Details of the regulations and requirements concerning shares and share capital are available from Companies House. Each CIC that is a company limited by shares divides its share capital into units or shares of fixed amounts.
Can a community interest company make a profit?
A community interest company (CIC) limited by guarantee is a ‘not for profit’ company, this means that it does not operate for private profit. Any profit generated is used to grow and develop its business which is benefiting an identified community, or goes directly to benefit that community.
Can a CIC make profit?
Does a CIC need two directors?
Number of directors A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three.
Can a CIC take donations?
Yes, social enterprises can accept donations. Their treatment depends on the legal structure the social enterprise has and where the donations came from (individuals or businesses) and whether the donation is money, services, goods or other items.
Can a CIC pay its directors?
A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.
Can a CIC have 2 directors?
Can I be a Director of more than one CIC? Yes – there is nothing to stop an executive director of one board becoming a non-executive director on another company’s board.
Can a CIC receive donations?
All you have to do as an employee of a CIC is to set up your company as a cause on GoRaise. Once this is done, you can begin to receive donations through our service. GoRaise allows your supporters to collect donations for you every time they shop online at over 3,000 retailers.