CIC Association

Serving Community Enterprise


Setting up a CIC

Guidance on how to set up a CIC especially where communities need to work together before they actually create the CIC e.g. collect funds commission work from advisors ahead of formation as some market testing or preparatory work

Members: 243
Latest Activity: Oct 14

Discussion Forum

More info regarding Asesst locked Body... 2 Replies

Can someone please give some help/guidance surrounding the assest locked body section in the articles of association.We are looking to set up a CIC involving live stock that we already own. Is there…Continue

Started by Katie. Last reply by John Mulkerrin Oct 14.

CIC Directors - length of term of office 1 Reply

Is there a limit, statutory or guidance, on the number of years a director can serve on the board of a CIC ?    And how many years out before able to re-join as a director ?A reference to the limit…Continue

Started by Adrian Dwyer. Last reply by James Macfarlane Sep 9.

Help Changing Model Articles to cater for Single Director 7 Replies

Set up a CiC this year to help local BAME communities with future intent of adding directors. Have adopted the model memorandum from Companies House. The Bank is unable to open bank account as the…Continue

Tags: director, single, articles, model

Started by Rehena Harilall. Last reply by Dave Dawes Aug 11.

Ethical Bank 2 Replies

Hello everyone, first of all, thanks so much for creating this space and these tools. I am brand new in these waters and I am trying to dive and swim as best as I can.Little foreword: We are in the…Continue

Tags: bank account, ethical bank, banking

Started by Giulia Baccosi. Last reply by Giulia Baccosi Feb 17.

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Comment by John Mulkerrin on February 8, 2013 at 14:46


Mostly right, the trustees dont have to be on the board though, they could simply engage as part of their trustee responsibilities and the formal relationship between the two. 

Comment by Joshua Allerson on February 8, 2013 at 11:14

Ok, thanks. Am I right in thinking then, that when the Charity runs a CIC subsidiary, it is likely that many of the CIC Board will consist of Trustees from the parent charity - therefore they are non-executive board members. They might however, decide to employ executive directors to oversee the actual management of the CIC. These executive directors would be on the CIC board, but not the charity's board, but it is likely that they will be present at the charity Board meetings, if only to report/take direction. 

Is this understanding correct? 

Comment by Geof Cox on February 7, 2013 at 10:03

Yes John's right - the Charity Commission won't let a charity set up a subsidiary - whether it's a CIC or not - to pay trustees 'by the back door', so most arrangements that involve this kind of thing have to be avoided.  The Commission does occasionally allow trustees to be paid by the charity itself, of course - though you have to make a good case, usually around indispensable and hard to find knowledge, skills, qualifications, etc - and it may be that the case John quotes came under this exception.

Comment by John Mulkerrin on February 6, 2013 at 20:20


Best to confirm the particulars with The Charity Commission. There was a case recently for example, where the chair of trustee's also had to take control of the executive for a short period of time, and was paid accordingly. It caused a stir but I think as it was temporary and clearly separate activity it was deemed ok, check for yourself though!

Best practice would be to separate them, in my humble opinion.

Comment by Joshua Allerson on February 6, 2013 at 18:08

If you are setting up a CIC to exist as a subsidiary of a Charity, and these two bodies share Board members, what are the rules regarding the payment of Directors of the CIC? ie, one of the Directors of the new CIC is also a Trustee, would they be required to cease to formally be a Trustee if they intend to be paid for their role as a Director?

Comment by John Mulkerrin on January 30, 2013 at 11:52

@Joshua - Yes, the details of appointing new directors are in your articles of association.

Comment by Joshua Allerson on January 15, 2013 at 15:02

If I may further clarify something, I am interested in understanding how non-executive members are appointed, does this work in the same way as members of a charitable trust are not necessarily on the Board? In which case, would there be opportunities to elect new Board members for a CIC at the AGM like in a charitable trust?

Comment by Joshua Allerson on January 9, 2013 at 18:15

That's really helpful thank you. In regard to governance, I was thinking along the lines of how/who appoints executive and non-executive members.

I appreciate this will vary among different CICs, but I was hoping for a general idea.


Comment by John Mulkerrin on January 9, 2013 at 17:58

Hi Joshua

Very simply the executive run the day to day, the non-executives dont.  They both decide what the strategy is at board level, the executive is charged with delivering it.

Having non execs is an excellent way to bring in the expertise you need and to strengthen governance, not sure that is what your looking for re how it affects governance?

Comment by Joshua Allerson on January 9, 2013 at 17:10

Hi everyone, I was wondering if anybody would be able to explain the relationship between executive and non-executive members in the organisation and how this affects governance?


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