1. I ~.
Introduction
There is no agreed definition of what is a social enterprise and it is not the purpose of
this Guide to consider the arguments about whether or not any particular purpose is or is
not a social purpose or object. We aim to provide some guidance on the available legal
structures and to consider some of the principal advantages or disadvantages and
limitations of those structures which may influence which structure is more suited to
you.
The DTI define social enterpnse ('Social Enterprise - A strategy for success' - 2002) as 'a
business with primarily social objectives whose surpluses are principally
reinvested for that purpose in the business or in the community, rather than being
driven by the need to maximise profit for shareholders and owner'.
From this it is clear that a social enterprise is not defined by its legal structure but by its
purpose and, more importantly, by its effect. Accordingly the structure that should be
adopted reflects the specific needs of the enterprise and it is important to give proper
consideration to those needs.
This Guide does not provide a comprehensive statement of the law as it applies to the
different structures and we do not include any advice or recommendation on tax or
financial issues. Advice should be taken on your particular requirements at an early stage
in your considering setting up a social enterprise.
r Guide to Legal Structures for Social Enterprise © Wrigb"s Solicitors LLP Sept 2009 (mjl) 1