I wonder if anyone out there could help clarify some queries if you can please... we are trying to start up a small CIC in Bristol from scratch, the CIC will provide services for vulnerable women in our local community.
I asked the CIC regulator who should sign the memorandum, and wasshe said the first directors? However, I later read, can't recall where unfortunately, that it is all involved in founding and setting up the company? Does this mean those who subscribe would all be founding members? Directors included too? As they form our small membership of five.
Could someone please explain to me what to consider when choosing between becoming a private or public CIC, are there any disadvantages to incorporating as a private CIC?
We think we shall be opting for a private CIC, limited by guarantee. We can limit this guarantee to £1 per member, yes?
All Guarantee CICs are private, and yes £1 is the usual amount guaranteed.
The 'subscribers' sign the Memorandum - these are the first MEMBERS, and are distinct from the first DIRECTORS. Both groups sign the incorporation Form IN01 in the appropriate sections. An individual can be both a Member and a Director, but need not be.
The crucial thing to think about is that the Members OWN the CIC - they are ultimately in control, because they can remove Directors. In many small companies - especially co-operatives - the founding individuals are all both Members and Directors - but it's up to you!
Thanks Geof, that's really helpful information.
To clarify, then, would I now be correct in thinking that if all five members sign the memorandum, and then take a vote/decision upon the appointment of who will be appointed two directors from those five. Which then, upon appointment would in turn be entered onto Form IN01?
I wasn't aware that the first members were distinct from the first directors, and am sure I'll be quizzed more on that at our meeting tomorrow! To this end, would you by any chance, have any links you could direct me to that I can present to the other members please?
Would you know if any member or volunteer can occupy the role of chair, or does it have to be a director?
Thanks so much!