Question: Company law assignment
‘The general idea behind the Community Interest Companies (CIC) is to have available a custom made legal vehicle for community and social enterprises where the profits are to be made available for public work.
However, a more focused Community Interest test is in place which has been said to make the implementation of such Companies impossible. Further, it has been said that the Regulator of CIC does not seem to have proper guidance as what constitutes a Community Interest Company.’
Do you agree with the above statement?
Discuss.
Substantiate your paper by making reference to the relevant provisions in the Companies Act 2006 and/or case law.
Answer: Each application is examined and assessed on its own merits. However, one can be said to be eligible to be a CIC, an enterprise/business must pass the Community Interest Test. This means that the Regulator must be satisfied that a reasonable person might consider that the activities of that enterprise/business will be carried on for the benefit of the community. To enable the Regulator to make this decision, all applicants for CIC status must make a Community Interest Statement, as mentioned above, indicating why they believe that they satisfy the test. In addition, the constitution (articles of association) of a CIC must comply with the relevant legislation.......(short extract)
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Details: - Mark: Not available | Course: Company Law | Year: 1st | Words: 3095 | References: No | Date written: Not available | Date submitted: March 14, 2011 | Coursework ID: 651
