Community Interest Companies
= UK legal form for nonprofit activities
URL = http://www.cicregulator.gov.uk/
Description
"Community Interest Companies (CICS) are limited companies, with special additional features, created for the use of people who want to conduct a business or other activity for community benefit, and not purely for private advantage. This is achieved by a "community interest test" and "asset lock", which ensure that the CIC is established for community purposes and the assets and profits are dedicated to these purposes. Registration of a company as a CIC has to be approved by the Regulator who also has a continuing monitoring and enforcement role."
(http://www.cicregulator.gov.uk/)
Characteristics
The asset lock
From the Wikipedia:
The "asset lock" refers to provisions in the company's articles that ensure the assets of the company are, at least mainly, applied for the benefit of the community. The precise terms are specified in legislation. Assets not applied directly for the benefit of the community may only be exchanged for full value or transferred to another "asset-locked body". The only exceptions are distributions to the company's members for the purpose of returning paid-up capital, or paying dividends and interest (which are subject to caps)."
(https://en.wikipedia.org/wiki/Community_interest_company)
Status
From the Wikipedia:
"CICs were introduced by the UK government in 2005 under Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004. They enjoy the flexibility and certainty of the company form, but with statutory provisions to ensure they are working for the benefit of the community. The Regulator of Community Interest Companies provides oversight, which is intended to be "light touch".
CICs have proved popular, with some 10,000 registered in the first ten years of the status being available. CICs tackle a wide range of social and environmental issues and operate in all parts of the economy. By using business methods to achieve public good, it is believed that CICs have a distinct and valuable role to play in helping create a strong, sustainable and socially inclusive economy."
(https://en.wikipedia.org/wiki/Community_interest_company)
History
From the Wikipedia:
"The community interest company emerged from many sources, often citing the absence in the UK of a company form for not-for-profit social enterprises similar to those in other countries. A first significant proposal for a new company form in the UK was advanced in 2001 in "The case for the Public Interest Company", by Paul Corrigan, Jane Steele and Greg Parston of the Public Management Foundation. This proposal was based on research funded by the Gulbenkian Foundation, Gordon Roddick, and the Office for Public Management, and was influenced by the example of the American public benefit corporation. Stephen Lloyd of Bates Wells Braithwaite is also credited with having conceived of the idea of the "Community Interest Company" and led much of the work on establishment of that legal company form in the UK."
(https://en.wikipedia.org/wiki/Community_interest_company)
More Information
- intro video via https://www.youtube.com/watch?v=8n-orUfrots