Community interest companies top 500
11 Oct 06
New corporate vehicle has produced wide range of community benefits, says regulator
Five hundred community interest companies have been formed since the enabling legislation came into force just over a year ago, their regulator has announced.
Territory Mapping CIC, a Portsmouth-based venture offering training and coaching to charities, voluntary organisations and social enterprises, became the 500th registered CIC this week.
Established under the Companies (Audit, Investigations and Community Enterprise) Act 2004, community interest companies have to show they will pursue a wider community interest than just their employees or members. CICs are separate from charities but can be established by charities as trading arms.
Regulator John Hanlon said that in the 14 months since the legislation came into force, CICs had been set up as cinemas, radio stations, special schools, ferries, railways, day care centres and recycling units. "The list is endless but they all have one thing in common. They are providing real and tangible benefits to communities throughout the UK."
Scotland's most recent community interest company is Scotcash CIC. Based in Glasgow, it provides affordable loans and financial advice to people with a poor credit rating.
Dividend payments to CIC shareholders are strictly controlled and the regulator has powers to investigate possible abuse of CIC status and take necessary action. His office website is www.cicregulator.gov.uk.