CIC Association

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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

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Discussion Forum

Who is a subscriber. HELP 4 Replies

Hi, Im in the middle of filling out form IN01 and in Part 4 it asks for Subscribers. Who are these.I have just set up a forest school (outdoor ed for children) in a local woodland and want to become…Continue

Started by Emma. Last reply by Emma yesterday.

Re: Trevor Saunders - Setting up a CIC. Ltd by shares or guarantee? 2 Replies

Replying to the question copied below which was posted as a comment:Comment by Trevor Saunders 5 minutes agoHello, I'm so glad I have…Continue

Started by James Macfarlane. Last reply by James Macfarlane Jul 25.

Re: Trevor Saunders - Setting up a CIC. Ltd by shares or guarantee?

Comment by Trevor Saunders 5 minutes ago 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 ?Continue

Started by James Macfarlane Jul 25.

1 Director for a CIC - Help needed with Articles of Association 29 Replies

HiI was wondering if anybody would be able to give me some advice please.  I am currently in the process of compiling the paper work needed to register as a CIC.  At present I was hoping to register…Continue

Started by Angie Beal. Last reply by John Mulkerrin Jun 1.

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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.

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 

 

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