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Community Interest Company (CIC)

Corporate status

Incorporated

Terminology: governing document

"Memorandum and articles of association".

Terminology: governing body

"The directors" or "the board of directors", although the memorandum and articles of association may use some other term to describe the directors.

Management/governance structure

See "Company". A CIC must first be registered as a limited company; CIC status will be an additional "badge" overlaid on the basic company structure.

Membership

As above.

Governing legislation

Will be governed primarily by the Companies Acts 1985 and 1989, plus new legislation yet to be passed.

Charitable status available?

No.

Profit distribution permitted

No - one of the defining characteristics of a CIC will be that it cannot distribute profits (except for a capped return on share capital, if the company is limited by shares).

Examples of Use

The CIC is primarily intended for use by social enterprises, who need the freedom to trade as a company but also need some objective evidence of their community benefit credentials in order to secure grant aid and other support.

Participation issues

See Company limited by guarantee or Company limited by shares.

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