I am working with a group of stakeholders in trying to set up a not for profit eye health screening service. Am doing the paperwork and am confused as to what I have to do with regards to the section on "Assest Lock" (section 3.) in the Articles of Association. Thanks in advance. Murtuza
You need to decide if you have a particular asset locked body that you would want to receive any assets from the CIC in the event of the CIC ceasing for any particular reason. So if you have another CIC or a Charity that you would want these assets transferred to you need to state it in this section.
You do not have to choose one straight away and can add one in later, if you do not choose one and the CIC does cease for any reason the Regulator would decide where to transfer any assets (if there are any to transfer)
'If the company is wound up under the Insolvency Act 1986 and all its liabilities have been satisfied, then any remaining residual assets shall be given or transferred to an Asset Locked Body approved by the Regulator.'