CICs for Charity Lawyers - Structure, Governance & Key Legal Issues

Introduction

Community Interest Companies (‘CICs’) can provide an attractive alternative or complementary structure for organisations pursuing social or community objectives and are increasingly relevant to charity lawyers advising clients on structure, governance and succession. However, moving between or advising on charitable and CIC structures requires a clear understanding of the different regulatory regimes, governance requirements and restrictions that apply.

This webinar provides charity lawyers with a practical introduction to the establishment, governance and operation of CICs, focusing on the key issues that arise when advising charitable organisations, trustees and social enterprises. It will explore the community interest test, the asset lock, dividend restrictions and the redemption or repurchase of shares, together with the practical implications of these requirements.

The webinar will also examine the model articles of association for both small and large membership CICs, considering how different membership structures can affect governance, profit distribution and decision-making. Particular attention will be given to establishing a CIC and converting from charitable status, helping practitioners understand the legal and practical considerations when advising clients on structural change.

It will consider the impact of the Economic Crime and Corporate Transparency Act 2023 (‘ECCTA’), alongside recent case studies and regulatory developments, providing practical insight into current best practice and the expectations of the CIC Regulator. By the end of the webinar, you will have a clearer understanding of when a CIC structure may be appropriate, the key issues to consider when advising on one and how to help clients avoid common regulatory and structural pitfalls.

What You Will Learn

The webinar will cover the following:

• The legal structure and key features of CICs
• The legislative and regulatory framework governing CICs
• The impact of the Economic Crime and Corporate Transparency Act 2023 (‘ECCTA’)
• How CICs are regulated and the role of the CIC Regulator
• Establishing a CIC and converting from charitable status
• The asset lock and its practical implications
• Redemption and repurchase of shares and reduction of capital
• Payment of dividends and applicable restrictions
• The dividend cap and maximum aggregate dividend cap
• Choosing the appropriate articles of association and understanding why
• Practical CIC case studies and key lessons for practitioners