Explanatory Notes

Companies (Audit, Investigations and Community Enterprise) Act 2004

2004 CHAPTER 27

28 October 2004

Commentary on Sections

Part 2: Community Interest Companies

Summary and background

Change of status

Section 52  - Re-registration

258.This section brings together provisions on the re-registration of CICs.  Subsection (1) provides that once a company is registered as a CIC, it will not be able to re-register as an unlimited company.  Such companies are able to take advantage of reduced regulatory and reporting requirements under the Companies Act 1985, and this would be inconsistent with the reporting requirements placed on CICs by section 34, which are intended to complement the requirements on ordinary limited companies.  Subsection (2) ensures that any certificate of incorporation issued in respect of a private limited CIC upon re-registration as a public limited CIC or vice versa will contain a statement that the company is a CIC.