To incorporate or not…I Latin root – ‘corpus’ = body – “artificial legal people”I Unincorporated = no separate body or identity, so individuals are jointly and severally (individually) liable for activities – subject to Common LawI Incorporated = separate body to hold assets, employ people, enter into contracts and sue or be sued! Subject to Company Law.
Types of incorporated bodies..I Companies: several types – governing document is Memorandum and Articles of AssociationI Three main types in this sector I Limited by Shares or by Guarantee I Industrial & Provident Societies (IPS) I Society for the Benefit of the Community I Bona-Fide Co-operative I Community Interest Company (CIC)
Key considerations…I Ownership - Private / Common – (not-for-private-profit)I Management - Community / Collective – everyone /Democratic – a fewI Principles / Objectives - Social Enterprise / Co-operative /Development Trusts
Charitable StatusI Companies > Charity CommissionI IPS (SBC) > Inland RevenueI Heads of Charity dictate whether organisation is eligible to receive statusI Tax advantages – Business Rates and Corporation TaxI Trustees govern organisation – workers not currently allowed on managementI Also governed by Charity Law if company
Community Interest Company (CIC)I Introduced in July 2005 as new type of social enterpriseI Statutory “asset lock” to prevent asset and profit distribution except for community purposeI Must operate for the benefit of the community and pass a Community Interest TestI Has limited liability, with shares or guaranteeI Must be able to demonstrate community benefit to new CICs regulator (through eg. social accounting)
What to Go ForI Co-operatives - organisations which are owned and controlled by their members OR worker co-operative the employees own and control the businessI Community Businesses - businesses which are owned and controlled by a community could be a geographical community or ‘a community of interest’I Development Trusts -asset based organisations owned and controlled by the community, often have a range of projects under one umbrellaI Trading subsidiaries - the trading arm of a Charity or Trust
LearningI Mem and Arts - Getting foundations rightI Governance - Another complete organisation to run and administerI Political - Influenced and controlledI Trustees board - access / skills/ balance/ recruitment
I am an AONB Manager ........ I would want you to think about
FutureI Consider benefits that a Trust status can bringI Look at how to access these benefits directly or indirectly - i.e. perhaps no point in us all doing it independently, can we collaborateI Try to look at less local authority reliance, more direct community engagement - could some AONBs become independent area based organisations. more representative of place rather than designation boundary.