CIC Association

Serving Community Enterprise

 

hi all, just hoping to get some guidance on starting out, so a couple thing if you please,

 firstly a bit about who we will be, so you can advise on how we go about things,

 The company's main aims will be to acquire facilities for use by other charities and social enterprise's without charge, these charities will have to operate in nottinghamshire and provide benefit to a specific part of the community. apart from directors the only other people involved will be volunteer fund raises and beneficiary contacts.

 

just want to  know which articles of association would be suitable 

Company limited by guarantee with a small membership (model constitution no. 1)

Company limited by guarantee with a large membership (model constitution no. 2)

and how much needs to be altered or added, and can me and my partner both be directors.

 

any advice would be helpful at this early stage   with thanks devon.

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Replies to This Discussion

Hi Devon,

The only relatively easy question you ask is whether you and your partner can both be directors - the answer is that this is fine in Company/CIC law as long as you're not disqualified for any other reason - and you'd know if you were - but some funders don't like it, especially if you 2 are the only directors.

My guess is that you could use Model 1 pretty much as it is - but to get sound advice you need to go into a lot more detail - contact a local/regional social enterprise support body.  If the 'facilities' include land/buildings, for example, either a charity (for tax relief on windfall profits if property prces ever escalate again!) or a share structure (for investment) might be better; or your initiative might work better bringing the charities/beneficiaries into membership, in which case Model 2 (or Share Model 6) would probably be better.

Choice of legal structure is intimately bound up with your business model, and the two have to be shaped up together.

Thank you for your advice, its real helpful. Just one more question. You say a different structure may be better if our company was to own property/land. Does that still apply if the property owned in our case holiday homes caravans / log cabins which usually depreciate with time. In advance thanks devon

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