Government publishes intentions on Community Interest Company
Howard Lake | 1 November 2003 | News
The Department of Trade and Industry has published details of how it proposes to introduce a new type of company structure for not-for-profit businesses and social enterprises.
The government has announced that it intends to proceed with legislation to establish the Community Interest Company “as soon as Parliamentary time allows”.
The concept of the Community Interest Company (CIC) was originally outlined in the Cabinet Office Strategy Unit report “Private Action, Public Benefit”, published in September 2002. This new type of company could prove a useful structure for organisations looking to work for community benefit “within the relative freedom of the non-charitable company form, but with a
clear assurance of not-for-profit distribution.”
status.
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In its public consultation phase the proposal received 134 formal responses from bodies such as ACEVO, NCVO, Association of Charitable Foundations, Community Matters, and the New Economics Foundation.
The government’s proposals to proceed have been published together with details of some of the feedback received. For example, the government has noted the general
support for its proposal to exclude
political parties from adopting Community Interest Company status, or establishing such subsidiaries. It therefore intends to incorporate these exclusions in legislation.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.