My name is Steve Krupa. I represent a voluntary organisation which is engaged in community-owned renewable energy programmes and also community-led energy reduction projects.
We are in the process of reviewing our status and want to incorporate into an appropriate company format. A Community Interest Company is one possibility.
We want to form a social enterprise where we raise capital by a share issue within the local community to fund a community-owned wind turbine project. Share ownership will hopefully be led by several hundred local investors and we will look to raise in the order of £750K to £1M
Our aim is to generate a revenue stream from which we can
a) Pay local investors a reasonable dividend
b) fund other local community energy projects, both generation and reduction
We would welcome the CIC association's comments on the likelihood of the Community Interest Company being the right structure for us to use. The other alternative we are looking at is an Industrial Provident Society.
Is a CIC a better format than an IPS to raise capital by a share issue? Will the £20K investor limit in the IPS format be changed? If we form a CIC and have more than 100 investors will we have to become a PLC?
Please give us the benefit of your experience. Thanks!