CIC Association

Serving Community Enterprise

Hi there,

I am converting to a cic lts by shares. At the moment the 2 directors are myself and my husband. The service we run is a unique service for adults with disabilities. We are very keen to make a difference and change attitudes within communities. 

At the moment we do not earn enough to employ anyone yet to expand in the way we want to we will need help! We are lucky enough to have attracted a few volunteers who approached us so we are hoping as a CIC we may be able to recruit more. 

I would love to get a team together - possibly another director to help with the running of things and with helping with decision making. Eventually we hope to be able to employ others - has anyone set up with paid and non-paid directors or would you say its wrong to have some paid and some not? Im not sure how comfortable i am with asking someone to help unpaid but really dont have the funds yet to pay a wage (we barely take a wage ourselves yet and the business is our only form of income).

Does anyone have any tips on getting a team together? where do you look for people - we have a few contacts but should we advertise in the local community to see if others want to join us?

any advice would be appreciated :)

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Replies to This Discussion

Hi Emily

Good luck with your journey, what I would say simply is you can do anything you like (as long as it is legal!). By all means look at what you can achieve with the local community, asking your current volunteers to help is also a good idea.

To answer your questions there are CICs with paid/unpaid Directors, and our last survey indicated over 40% of CICs use volunteers

Will you be seeking grants? As a ltd by share CIC you can have dividend paying and non dividend paying shares. If you have dividend paying shares some grant funding bodies may not approve a grant to you as there would be a chance you could 'siphon' the grant out of the company via dividend payment, highly unlikely but it can be an issue.

Another thing to consider is the amount of Directors, for example Big Lottery 'Awards for All' will only fund not for profit groups that have at least 3 non related Directors.

Id be happy to take a phone call if that would help, you can try and catch me in the afternoons on 07903 592912

Best of luck


Thanks for your reply John, I will be looking to apply for grants at some point so it's useful to know about restrictions etc.

I didnt know you can have non paying dividends. How do you declare that you wont be paying them?

see here:

schedule 2 allows payment to asset locked bodies only, schedule 3 allows payment to non asset locked bodies also.

Even with a schedule 3 the directors would still have to decide whether to pay one

Hi John, Thanks for your replies. I'm aware of the support you've given us through Charlotte - much appreciated by all! :) 

I will try and give you a call next week - we are thinking that we are more likely now to go to ltd by guarantee. With the small membership on this do you know the max number of directors permitted under that schedule? 

We've had a pretty productive day and have a few close people in mind that we'd like to discuss directorship with - but this could possibly lead us to having 5-6 directors ( that includes myself and my husband). I wasn't sure if stretching to 6 would lead to us needing large membership?

Many thanks in advance for any advice you can offer on this!


Small membership is for when all members are Directors.

If for example, you wanted 20 people to have a strong role in governance (as members), but only six would be Directors the large membership would be needed.

ah now it makes sense! Thank you :)



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