CIC Association

Serving Community Enterprise

Information

Setting up a CIC

Guidance on how to set up a CIC especially where communities need to work together before they actually create the CIC e.g. collect funds commission work from advisors ahead of formation as some market testing or preparatory work

Members: 189
Latest Activity: Dec 6

Discussion Forum

Hilary Sudbury - is it possible to convert from a CIC Ltd by Share to a CIC Ltd by Guarantee? 3 Replies

In reply to comment by Hilary Sudbury "is it possible to convert from a CIC Ltd by Share to a CIC Ltd by Guarantee?"A company limited by shares cannot be converted to one limited by guarantee (or…Continue

Started by James Macfarlane. Last reply by Hilary Sudbury Nov 28.

Founding CIC as CASC compliant 1 Reply

How should the model articles be modified to make the CIC compliant to CASC (community amature sports club) requirements?Continue

Tags: CASC

Started by Ryan Harman. Last reply by James Macfarlane Nov 28.

Can you convert to a CIC if you were a partnership? 6 Replies

Hi again,Sorry this feels like a very simple question but I can't find an answer!Our business is currently officially a partnership, not a LTD co.I know to our customers it'll look like we're…Continue

Started by Peter Hart. Last reply by Peter Hart Nov 27.

Questions on protecting equity invested in a CIC 2 Replies

Hi All,Firstly, I'm so grateful this resource exists! Our local VDA (where I'd have previously been able to get this info) has just closed down. To the point: I'm full of questions as we seek to…Continue

Started by Peter Hart. Last reply by Peter Hart Nov 14.

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Comment by Hilary Sudbury on October 30, 2017 at 18:13

is it possible to convert from a CIC Ltd by Share to a CIC Ltd by Guarantee?

Comment by Trevor Saunders on July 25, 2017 at 12:59
Hello, I'm so glad I have found this group. Setting up a CIC. Ltd by shares or guarantee? Is their a difference in terms of being able to apply for grants ?
Comment by caroline wheeler-evans on April 12, 2017 at 11:27

Hi I have finally got some advice on filling out my forms ! However could anyone help me in regards of what taxes are expected with CIC and what liability directors have should the company fold ? Thanks.

Comment by James Macfarlane on April 5, 2017 at 11:16

Re: caroline wheeler-evans

You will only be a director if you are named on the IN01 form as one. I agree with John regarding the number of directors. I would say 6 is a practical maximum. The amount of 'say' directors have is determined by your articles, but they usually are responsible for the general management of the CIC. The asset lock constrains directors taking profits from the company - see here fore more info - https://www.gov.uk/government/publications/community-interest-compa...

Comment by John Mulkerrin on April 5, 2017 at 11:05

You can have a minimum of 1 Director, but for example Big Lottery Awards for All want 3 unrelated Directors to be eligible to qualify for that grant. 

You can arrange the structure to suit, the different types of CIC have different rules on issues like entitlement to profit.

Comment by caroline wheeler-evans on April 5, 2017 at 8:27

Hi might sound a silly question but if I am setting up a CIC am I  a director ? Also how many directors should there be and if so how much say do they have in the business and or entitlement to any profit ? Thanks

Comment by James Macfarlane on April 4, 2017 at 9:31

Re: Sky

Being a CIC (as opposed to a 'regular' limited company) would usually make you more likely to obtain grant money as most funders will require an 'asset lock'.

A PLEA!!!!!! Could people create separate posts to ask questions? It makes it so much easier to follow replies than with comments on here. It's not very intuitive - you have to click 'add a discussion'.

Comment by Donald (Sky) McCain on April 4, 2017 at 9:04

Hi!

I'm advising a group of elders who have come together to set up a senior Co-housing company that will hold the title to the land and lease us plots for our privately owned dwellings.  Each homeowner will be a director of the limited company.

My question is:  Supposing our objectives are "in the interest of the community." would being a CIC make us more likely to obtain grant money?  

Thanks in advance to anyone who has information or has experienced this situation and is willing to comment.

best Wishes,

Sky

Comment by John Mulkerrin on April 3, 2017 at 15:17

For wider readerrs, the paperwork breaks down into four bits:

1. Company House 1N01 - Basic info about the type of company (Limited hby Share, Limeted by Guarantee, Co-operative etc) and details of directors/persons of significant control

2. CIC 36 - This is what is used to approve CIC status on the company (What are main activities, What is community benefit)

3. Articles of Association - you can use the CIC Regulator templates for most circumstances. These are the rules of the CIC, how to appoint/terminate directors, voting rights etc

4. Memorandum of Association -  a legal statement signed by all initial shareholders/members agreeing to form the company

Comment by John Mulkerrin on April 3, 2017 at 15:10

Yep, mostly we find it's the 1N01 that is the issue.

 

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