Hi everyone, I'm new to this group, so apologies if my question has already been answered somewhere along the line. Does anyone know if having a family member on the board of a CIC is frowned upon? I cannot find any document which states this should not be done, however I was recently informed that this was the case.
I appreciate your comments. Thank you.
Hi, thanks for posting here, it's easier than wading through comments! In general, there's no problem with CICs having related family members. Indeed, the best CICs may be family run. However, if you are looking for grant funding, you may find it more difficult to obtain. For example, the Big Lottery Fund will not accept applications where two bank account signatories are related or live at the same address.
Thank you for your response James. Is there somewhere that this has been stated? Again, I have been unable to find any info.
Regarding lottery funding, there is this link - Factsheet 1 Bank Statements.pdf
Where a CIC's directors are family members, they have to be very careful to act in the interests of the CIC itself and its social purpose, and not in the interests of the family.
If you can avoid having a board made up of family members, I would say that's the best option, but it depends on all the circumstances, and I wouldn't consider it inappropriate for a small number of directors to be related (e.g. two out of a board of six). I know an autism support group where a married couple are both on the board, and there's no question of impropriety.