CIC Association

Serving Community Enterprise

Hi

First post to the CIC Assoc. I've set up a few CICs before, but have a quick question.

I'm aware we are required to include in our articles the provisions prescribed by The Community Interest Company Regulations 2005 (the regulator has these in red in her model articles).

My question is, do we have to have these exactly as in the regulations word-for-word, or can we paraphrase or change them slightly, as long as the meaning is the same?

The structure of the CIC I am setting up at the moment will have about a dozen members who will meet monthly, and elect 4 directors to run its day-to-day affairs. We want the members to approve applications for membership, but one of the prescribed provisions is:

(3) No person shall be admitted a member of the company unless he is approved by the
directors.
(4) Every person who wishes to become a member shall deliver to the company an application
for membership in such form (and containing such information) as the directors require and
executed by him.

Thanks

James

Views: 112

Replies to This Discussion

Hi James,

You have two questions here:

  • You can indeed paraphrase as long as the meaning is the same; however, this can cause delay because the Regulator's office might not spot that the meaning is the same, and they will mistakenly reject the articles - this has happened to me more than once, and I've had to argue it out - no problem as long as you're not in a hurry.
  • However, your example of members being approved by members not directors is a change in the meaning rather than simply a paraphrase - the statute itself does specify approval by directors.  My advice is to leave the model wording as it is but simply add the approval by members you require - ie. "No person shall be admitted a member of the company unless s/he is approved by the directors and by the members in general meeting" - you can in practice combine the monthly meetings of members and directors.

Note incidentally that I always change the uses of 'he' and a number of other offences to equality in the Regulator's models! - one of a number of examples of paraphrasing that I think improves the models.

Thanks very much Geof.

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