Community Interest Companies
The Community Interest Company (“CIC”) became available in 2005 as a new form of limited company to meet the needs of organisations that trade with a social purpose or carry out other activities that benefit the community rather than their members, but are not able, or do not wish to become charities. For example, a CIC may be the appropriate vehicle for land preservation projects, the encouragement of sport, the establishment of a museum, support for community projects such as local radio, cafés etc., environmental projects and so on.
A CIC has the following features:
- It may be limited by guarantee or a public or private company limited by shares
- It may have a limited ability to pay dividends
- It may pay salaries to directors
- An "asset lock" protection gives those dealing with CICs the confidence that assets and profits will primarily be devoted to the benefit of the community rather than rewarding the owners or investors
- It may trade for profit to support a community purpose
- The regime applying to a CIC is administered by the Regulator of Community Interest Companies.
For further information email us at info@davidvenus.com or phone us on 01372 465330.
