Hello lovely people
We're a community radio station who registered as a CIC but declared ourselves not trading until we have got a bit more sorted. However, I think we're a bit confused about what we need to have in place before we can declare ourselves trading.
Our volunteer working on a lot of this stuff has a business background but not much experience of the voluntary sector, so I think we're getting out wires crossed - or it might just be me being vague!
Basically, he has come back to me saying "It is a criminal offence [for the Directors] to continue trading an insolvent company. Insolvent means that outgoings are more than projected income"
And extrapolates this to mean that we can;t declare trading until we have raised all the money (have it either in hand or confirmation in writing) that we need to cover the next financial year. I understand there are also a number of costs (tax etc) involved as soon as we do start trading.
For me this presents a challenge because it is hugely difficult to raise money without actually running the company, and also I do wonder whether anyone would have set up if this was the case?
In any case, I hope this makes sense, and thanks for any contributions! It may well be that I am missing the point (I'm more of an old-school just-crack-on volunteer) but we all have very limited experience of CICs so I worry that we are applying other rules here.