Hello :) I am currently completing the forms to start a CIC to work with young people. I am pretty much done apart from the nominated asset locked body section. I was wondering if I had to state an additional asset locked body in the articles at application stage or if we could do this later. If it is possible to submit without stating one, what then do I do with the parts of the articles of association that refer to it? Can I just delete them? Thanks for any help, Clare
Hi Clare, it is optional to nominate asset-locked bodies (ALB), but as far as I understand you can nominate as many as you want. Of course, you would have to say how the funds were to be distributed, e.g., 50/50 if there are two. ALBs are nominated in your articles, so my understanding is that you can nominate additional ALBs by amending your articles. I have had a quick look at the CIC regulations and the regulator's approval is required if a CIC wishes to change its objects, but not if it wants to add an ALB. This makes sense, but I've only looked into it quickly so someone may correct me. Regards, James
James has covered it, but for practical purposes:
you can leave it blank, if the CIC were to wind up without you nominating she (The CIC Regulator) would seek an asset locked body similar to yours to distribute any assets to.
you can add/change/remove to blank as you want, via resolution and amendment to articles.
Dont delete anything from the template, just leave blank if you want to proceed without one
Thanks so much. That answers all my questions. Now to get them signed and sent off. Thanks again, Clare
Just in reply to what John was saying about deleting things from the template articles, this may be a matter of preference, but personally I would not want to keep the article saying "if the company is wound up its assets shall be given to the asset-locked body specified below" if a body is not specified below. Also, the part that reads "(Please note that a community interest company cannot nominate itself as the asset locked body....." is just for your reference and should be deleted from the final articles.