Commentary on Sections
Part 2: Community Interest Companies
Summary and background
Becoming a community interest company
Section 36 - New companies
229.This section sets out the process for an organisation not already incorporated as a company to incorporate as a CIC. Since CICs are companies under the Companies Act 1985, the standard company registration provisions apply along with the additional provisions set out in this section. Applicants will be required to deliver to the registrar of companies both the normal documents required for formation as a company, and some additional documents called the ‘prescribed formation documents’ (subsection (1)). Regulations will set out what these additional documents should be (subsection (2)). It is intended that the documents will consist of:
a ‘community interest statement’ confirming the applicant’s intention to serve the community rather than private benefit, and to pursue activities in the community interest; and
a declaration that the applicant, when formed, will not be a political party or controlled by a political party (it is intended that regulations under section 35(6) will prescribe political parties and companies owned by them as excluded companies).
230.The registrar will pass a copy of all the documents to the Regulator without registering them (subsection (3)). If the Regulator is satisfied that the company is eligible to be formed as a CIC under the terms of subsections (4) and (5), he notifies the registrar who completes the company registration process.
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