Community Interest Companies (known as C.I.C.’s) represent the fastest growing community oriented enterprise movements in the country. Each month over 100 new CICs register to take on the legal form.
The CIC legislation was introduced as a legal form under the Companies Act 2006 and subject to that Act and company law generally.
The primary core features of any company holding CIC status are two fold;
- Assets owned by the company are held in an asset lock which secures those assets to applications for the good use of community.
- Limitations applied to dividend and interest payments made to shareholders and financiers ensure a profit can be made, but the primary focus remains on achieving benefit for the community
Both of these features are regulated by the Community Interest Company Regulator via an annual report, known as the CIC34, which is submitted to the Regulators office on an annual basis. The Community Interest Company Regulator’s office is a part of Companies House and governed by The Department for Business, Innovation and Skill – BIS.
CIC status can be held by both companies limited by shares and companies limited by guarantee. Co-operatives can hold the status and it is feasible for a CIC to make an IPO and hold PLC status.
The range of industries and markets that CICs are forming within is as varied as the economy itself – with CICs now carrying out business in the property, financial, health and many other key sectors.
To represent the CIC Community an Association – known as the CIC Association – was launched on the 9th of September 2009. At 1st January 2010 over 1000 people have registered on the website cicassociation.org.uk.
It is the hope of the CIC Association to aid in the development of this legislation to help it continue to represent the growth of community enterprise under CIC regulation as both a brand and landmark legislation.
References –
CIC regulator – http://www.cicregulator.gov.uk/
http://www.cicregulator.gov.uk/guidance.shtml
The Department for Business, Innovation and Skills
http://www.berr.gov.uk/
http://www.berr.gov.uk/files/file51508.pdf
