The Charitable Incorporated Organisations (Conversion) Regulations 2017

Cases where application must or may be refused

8.—(1) The Commission must refuse an application for CIC conversion if—

(a) it is not satisfied that the CIO would be a charity at the time it would be registered;

(b) the CIO’s proposed constitution does not comply with one or more of the requirements of section 206 of the 2011 Act (constitution of CIOs) and any regulations made under that section;

(c) in the case of a CIC which is a company limited by guarantee, the CIO’s proposed constitution does not comply with the requirements of paragraphs (6) and (7) of regulation 4;

(d) the Regulator has decided in accordance with regulation 6 that the CIC is not eligible to cease being a CIC.

(2) The Commission may refuse an application for CIC conversion if—

(a) the proposed name of the CIO—

(i) is the same as, or

(ii) is in the opinion of the Commission too like,

the name of any other charity (whether registered or not);

(b) the Commission is of the opinion referred to in any of paragraphs (b) to (e) of section 42(2) of the 2011 Act (power to require charity’s name to be changed) in relation to the proposed name of the CIO (reading paragraph (b) as referring to the proposed purposes of the CIO and to the activities which it is proposed it should carry on); or

(c) having considered any representations received from those whom it has consulted under regulation 5(2), and having regard to paragraph (3), the Commission considers that it would not be appropriate to grant the application.

(3) For the purposes of paragraph (2)(c) it would not be appropriate to grant the application in circumstances where—

(a) at the date the application was made, there have not been filed with the registrar any accounts or reports required to be delivered under the 2006 Act in respect of a financial year of the CIC which has ended by that date;

(b) at the date the application was made the CIC, or any of its directors, are subject to an undischarged requirement to send any document or information to the registrar or the Commission;

(c) the Regulator or the registrar has instituted civil or criminal proceedings in respect of the CIC which have not been concluded;

(d) the CIC is in the process of being dissolved;

(e) the CIC is in liquidation or administrative receivership; or

(f) any director of the CIC is disqualified from being a charity trustee or trustee for a charity under section 178 of the 2011 Act(1).

(4) If the Commission refuses an application for CIC conversion, it must so notify—

(a) the Regulator; and

(b) the registrar.

(1)

Section 178 has been amended by S.I. 2012/2404, S.I. 2016/481 and section 9 of the Charities (Protection and Social Investment) Act 2016 (c. 4); there are further outstanding amendments to section 178 to be made, from a date to be appointed, by section 9 of that Act.