Our CIC was setup over ten years ago and we are limited by guarantee but an acquaintance is looking to set up a new CIC is undecided as to which structure to adopt.
As I understand things, the main advantage of the shares route is to ensure that whoever sets up the CIC retains control of the company, which isn’t possible when limited by guarantee.
Would appreciate your thoughts and any recommendations based on others’ experience.
Technically you can still retain control of a Limited by Guarantee in any event but that conversation would be way too vague without detail to base an opinion on.
A Share CIC is useful if you want to increase particpation in certain ways or if you might want to offer external investors the chance to share in the distribution of profits, rather than for example a straight loan based arrangement which a Limited by Guarantee is able to offer.
An example would be if you wanted to have a Co-operative CIC, maybe to buy a local shop or pub.
Please tell your friend to email me direct at firstname.lastname@example.org if they want to provide more detail
Best of Luck