Hey guys Im new on here and are currently turning my sole trader idea of a Children's theatre company to a CIC limited by Guarentee with the intention of supporting children interested in performing Arts with the profit made :)
It's a very excited time but all this paperwork is intense... I think i have found all the paperwork required but still feel a little lost so any guidence would be greatly appreciated
thanks for reading
Have you seen the guidance documents at? https://www.gov.uk/government/publications/community-interest-compa...? Happy to help with specific questions.
Hi James...yes have and am re-reading...Im only stuck now on the Articles of Association form where it asks if the company is disolved this section - It does say if we do not choose the regulator will choose so can we just leave it blank?
1.1 For the purposes of this Article 3, the following asset-locked body is specified as a potential recipient of the Company’s assets under Articles 3.2 and 3.4:
Name: [ ]
(Please note that a community interest company cannot nominate itself as the asset locked body. It also cannot nominate a non-asset locked body. An asset locked body is defined as a CIC or charity, a permitted industrial and provident society or non-UK based equivalent. )
Charity Registration Number (if applicable): [ ]
Company Registration Number (if applicable): [ ]
Registered Office: [ ][i]
[i] See regulation 23 of the Regulations and [Parts 6 and 10] of the Regulator’s information and guidance notes. If the company does not specify that the remaining residual assets are to be transferred to a particular Asset Locked Body, an appropriate recipient will be chosen by the Regulator, in consultation with the company’s directors and members.
Nominating a potential recipient is optional so you can omit this section and remove the words in article 3 referring to a specified asset-locked body.
thanks James...could i just ask about one more point where i am unsure and cant seem to find what to put...it is the same form...section below
OBJECTS, POWERS AND LIMITATION OF LIABILITY
The objects of the Company are to carry on activities which benefit the community and in particular (without limitation) to [ ????????????????
[i] On the specification of the company’s objects, see [Part 5] of the Regulator’s information and guidance notes
thank you...looked at guidance notes but can't find anything about this specific bit :)
Section 5.5 below gives you the formal guidance, but could simply be 'To use theatre/art to support children'. Your CIC statement should obviously give a little more detail to help the Regulator understand what you do.
5.5. The objects of a community interest company - Unless a company’s Articles specifically restrict the objects of a company its objects are treated as unrestricted. This means that unless a company makes a deliberate choice to restrict its objects, the company is unrestricted in what it can do.
To show whether a company meets the community interest test we would regard it as best practice to clearly define in the CICs objects the nature of the proposed activities and the community, which it intends to benefit. For example, “to provide day care and transport facilities for the elderly and physically disadvantaged in North Essex”.
The Regulator considers that if a CIC chose unrestricted objects, then the activities of the company, the community that will benefit, and the way in which they will benefit should be clearly defined in the community interest statement.
As it would be very difficult to conclude that the company satisfied the community interest test if the application you submitted was not clear.
The objects can be changed after incorporation, subject to the approval of the members and the Regulator. You need, however, to be clear for your own purposes just what you intend to do and whom you intend to benefit before you seek incorporation as a CIC. Clearly defined objects, which can for example be quoted in a business plan, are more likely to inspire confidence in potential investors, loan providers, the community, other stakeholders and the general public.
You may also feel that defining the objects fairly closely will help to ensure that the enterprise will stay within the original intentions of the founders and any change of direction will be the subject of proper discussion at the meeting of members required to alter the objects.
On the other hand, you may wish to avoid too narrow a definition of the company’s objects, as this could expose the directors to legal action from disgruntled members in cases where the company, while nevertheless benefiting the community, has strayed outside its original purposes.
Thank you :)
I agree with John. If you want to allow your CIC to diversity into other areas keep it as "The objects of the Company are to carry on activities which benefit the community", but if you want to restrict what the CIC does to your original aims change it something like "The objects of the Company are to carry on activities supporting children interested in performing arts".
Thanks guys for all your help...forms going in the post this morning so hopefully we'll be registered shortly :) yey!
working guideline is 3 weeks, it'll soon come :-)