CIC Association

Serving Community Enterprise


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: 228
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Discussion Forum

CIC creating a charity

Hi AllI run Morvargh Sailing Project; we are a CIC based in Plymouth taking young people sailing on a tall ship to gain life skills etc. Morvargh is a real family run organisation with the two…Continue

Started by Matthew Barraud Apr 1.

Voluntary/unpaid directors 2 Replies

Hello all,I have created a new community interest company (Constructiveway) and would like to add 2-3 additional…Continue

Started by Juraj Vysvader. Last reply by Juraj Vysvader Mar 2.

Limited by Shares or Guarantee 1 Reply

Our CIC was setup over ten years ago and we are limited by guarantee but an acquaintance is looking to set up a new CIC is undecided as to which structure to adopt.As I understand things, the main…Continue

Started by Geoff Fletcher. Last reply by John Mulkerrin Feb 18.

Bank account appropriate for a CIC 4 Replies

HelloA Charity I founded has been with NatWest for a decade. Whenever we want to change who has access, it's a complete pain! I wish to avoid these issues when we set up a CIC.What banks are best…Continue

Started by George Pepper. Last reply by Pete Scott Nov 16, 2019.

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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


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 


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