InTouch SOCIAL ENTERPRISE EAST OF ENGLAND
Autumn 2006 • Issue 16
Inside: Editorial
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David Lloyd discusses why the dog didn’t bark, and why that’s important
New Business Link will field 50% more advisors
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CICs Kick In
By Abbie Rumbold
With 13 locations, it seems that less will be more once EEIDB takes the reins
Commissioning Access Programme (Cambridge)
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A new programme from The Social Enterprise People designed to help you widen your customer base and increase sustainability and profitability
The best kind of Friday
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SEEE CEO Michele Rigby enthuses about young social entrepreneurs Eagleye, SBR and BCT
Virtual Coffee Mornings
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Come along for half-an-hour each week without having to leave your desk
Equigas and Equipower
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If you want to make a difference when you use your utilities, here’s how to do it
Enterprising partnership saves landfill and benefits local community
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Millrace IT teams up with a big recycler – and there’s far more to it than commerce
Celebrating diversity in Norfolk
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A new CIC with a vision of a society that nurtures and values people of all nations
(Social) Enterprising Culture
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Consultant Adrian Ashton asks what it looks like, and if it can be created if it’s not there
Unco-operatively yours?
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InTouch content editor Peter Durrant puzzles over why there isn’t more cooperation among social enterprises…
Focus On… Working in Partnership
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What we hope is really useful information and news
New Kid on the Block
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he community interest company recently celebrated its first birthday, having been available as a legal structure for social enterprise since July last year. So what is it and has it been a success? To answer the second question first, it would appear it has been a success. Over three hundred have been registered so far – an impressive growth rate, given that the other legal options available (for example, ordinary companies, charities, industrial and provident societies) have been around for at least a hundred and fifty years and some much longer.
What is a “CIC”?
Howard Tait talks to some of the good examples of co-operation and finds a winwin way of doing things is out there
Resources Unlimited
Foreground: Abbie Rumbold. Background: right – Artstop, a new Community Interest Company based at Blickling Hall, Norfolk. Left: – Rainbow Nations was launched in Norfolk in June with the support of Archbishop Desmond Tutu. – see page 7.
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Screenreader.net – a business for blind people run by blind people
Internet: SEEE’s Web services are: http://www.seee.co.uk http://www.seee.co.uk/interactive
So what is a community interest company or “CIC” (pronounced “kick” by most)? A CIC is a normal limited liability company (limited by shares or guarantee) which is subject to the “community interest test” and an “asset lock” imposed by the Companies (Audit, Investigations and Community Enterprise) Act 2004 (the “2004 Act”) and Regulations made under that Act. The Community Interest Test is set out in the 2004 Act. The test is whether “a reasonable person might consider the CIC’s activities are carried out for the benefit of the community”. On application, the Regulator will ask the directors of the proposed CIC who comprises the community it seeks to serve, what are its activities and how do those activities benefit that community. The Regulator will then assess whether the proposed CIC has passed or failed the test. The CIC must continue to meet this test and provide evidence of this during the course of its existence. It does so by sending a CIC report each year, again describing its community, its activities and how those activities have benefited that community. This needs to be delivered with its accounts to Companies House, and will be placed on the public record. The Asset Lock means that the assets of the CIC, and the income and profits, must be applied in the interests of the community. The asset lock imposes obligations that: ➜ page 2 • restrict the transfer of assets at less than full market value (unless to