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: 219
Latest Activity: Jul 26

Discussion Forum

Which set up? 4 Replies

Hi. I have just registered as a sole trader and now realise that I should have set up a CIC.  What paperwork do I need to complete?  Thank you.Continue

Started by Tanya Hayter. Last reply by James Macfarlane Jul 22.

Land as an asset 1 Reply

Hi guysHello! Totally new to this space! Myself and are husband are setting up a project in Wiltshire that we are looking to establish as a CIC. We own the land that the project is going to happen…Continue

Started by Grace Dalgleish. Last reply by John Mulkerrin Jul 8.

First Post 1 Reply

Hi Everyone,Not sure if I'm posting in the right place. I'm on various forums for hobbies etc. and this has a different layout. Got two questions, one minor and one major...Minor. Does this forum…Continue

Started by Hugh Dennis. Last reply by James Macfarlane Feb 27.

Are CIC's exempt from needing to register with the ICO 2 Replies

I am working on terms and conditions and other features to try and get the CIC on a good legal footing before we really start up and came up against the issue of Information control.  Looking at the…Continue

Tags: CIC, exemptions, ICO

Started by Nathanael Lewis. Last reply by Nathanael Lewis Jan 16.

Comment Wall

Add a Comment

You need to be a member of Setting up a CIC to add comments!

Comment by Joshua Allerson on February 8, 2013 at 11:14

Ok, thanks. Am I right in thinking then, that when the Charity runs a CIC subsidiary, it is likely that many of the CIC Board will consist of Trustees from the parent charity - therefore they are non-executive board members. They might however, decide to employ executive directors to oversee the actual management of the CIC. These executive directors would be on the CIC board, but not the charity's board, but it is likely that they will be present at the charity Board meetings, if only to report/take direction. 

Is this understanding correct? 

Comment by Geof Cox on February 7, 2013 at 10:03

Yes John's right - the Charity Commission won't let a charity set up a subsidiary - whether it's a CIC or not - to pay trustees 'by the back door', so most arrangements that involve this kind of thing have to be avoided.  The Commission does occasionally allow trustees to be paid by the charity itself, of course - though you have to make a good case, usually around indispensable and hard to find knowledge, skills, qualifications, etc - and it may be that the case John quotes came under this exception.

Comment by John Mulkerrin on February 6, 2013 at 20:20

@Joshua

Best to confirm the particulars with The Charity Commission. There was a case recently for example, where the chair of trustee's also had to take control of the executive for a short period of time, and was paid accordingly. It caused a stir but I think as it was temporary and clearly separate activity it was deemed ok, check for yourself though!

Best practice would be to separate them, in my humble opinion.

Comment by Joshua Allerson on February 6, 2013 at 18:08

If you are setting up a CIC to exist as a subsidiary of a Charity, and these two bodies share Board members, what are the rules regarding the payment of Directors of the CIC? ie, one of the Directors of the new CIC is also a Trustee, would they be required to cease to formally be a Trustee if they intend to be paid for their role as a Director?

Comment by John Mulkerrin on January 30, 2013 at 11:52

@Joshua - Yes, the details of appointing new directors are in your articles of association.

Comment by Joshua Allerson on January 15, 2013 at 15:02

If I may further clarify something, I am interested in understanding how non-executive members are appointed, does this work in the same way as members of a charitable trust are not necessarily on the Board? In which case, would there be opportunities to elect new Board members for a CIC at the AGM like in a charitable trust?

Comment by Joshua Allerson on January 9, 2013 at 18:15

That's really helpful thank you. In regard to governance, I was thinking along the lines of how/who appoints executive and non-executive members.

I appreciate this will vary among different CICs, but I was hoping for a general idea.

 

Comment by John Mulkerrin on January 9, 2013 at 17:58

Hi Joshua

Very simply the executive run the day to day, the non-executives dont.  They both decide what the strategy is at board level, the executive is charged with delivering it.

Having non execs is an excellent way to bring in the expertise you need and to strengthen governance, not sure that is what your looking for re how it affects governance?

Comment by Joshua Allerson on January 9, 2013 at 17:10

Hi everyone, I was wondering if anybody would be able to explain the relationship between executive and non-executive members in the organisation and how this affects governance?

Comment by Sylvia Douglas on October 18, 2012 at 15:57

" Hi, can anyone offer advice .

are most funders eg Big Lottery ok funding a CIC with one director?Or do they prefer more directors for accountability?"

Regards Sylvia 

 

Members (219)

 
 
 

Groups

From Funding Central

Events

© 2019   Created by John Mulkerrin.   Powered by

Badges  |  Report an Issue  |  Terms of Service