Disaster Risk and Vulnerability by Haque C. Emdad;Etkin David;

Author:Haque, C. Emdad;Etkin, David;
Language: eng
Format: epub
Publisher: McGill-Queen's University Press
Published: 2015-08-15T00:00:00+00:00

Community Interest Companies

Developed in the United Kingdom through its Company Law and currently available in England, Wales, Scotland, and Northern Ireland, Community Interest Companies (CICs) were developed for entrepreneurs wishing to benefit the community, broadly defined, rather than company owners. A corporation can satisfy this requirement according to a reasonable-person standard that protects against a narrow definition of the community such as “my family,” “my friends,” or “regular drinkers of ABC beer.”11 The requirements include an “asset lock,” in which both profits and any assets that exist upon dissolution cannot be distributed, except as permitted by legislation or by transfer to another CIC or a charity. The United Kingdom government, unlike US states, created a new regulatory structure to oversee the hybrid organizations. An independent public office holder known as the CIC regulator serves as a “light touch regulator” who encourages the “development of the CIC brand and provide[s] guidance and assistance on matters relating to CICs.”12 When developed there were stringent limits on the percentage of profits that a CIC may distribute to investors.13 As of October 2014 the laws were loosened to allow CICs to pay individual shareholders an unlimited amount in annual dividends subject to a cap of 35 percent of distributable profits on total dividend payments.

CICs are required to register their existence, include the CIC designation in their name, and apply to the Regulator for special community interest status. Recent tallies have identified over 6,000 registered CICs in the United Kingdom.14

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.