Setting up a CIC

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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.

Comment by caroline wheeler-evans on April 3, 2017 at 14:57

thanks I will pick the form apart and get back to you I think it is mainly terminology 

Comment by John Mulkerrin on April 3, 2017 at 14:55

What dont you get Caroline? If you let me know the particulars I can try and help

John

Comment by caroline wheeler-evans on April 3, 2017 at 14:53

Hi John your helpful would be brilliant ! I am in the process of setting up a company and I am sure it comes under the umbrella of a CIC. However I have plenty of experience in the content of the company but none of filling out the forms. I have an understanding of what a CIC is and how it works but the forms are giving me nightmares ? I have looked at the Guidance but am still not really getting it ?? Thanks

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