Regulator announces that One Hundred Community Interest Companies have been formed
The Regulator of Community Interest Companies (CICs), John Hanlon, announced on Friday 27 January the registration of the one-hundredth community interest company: Social Enterprise London.
“I am pleased that communities across the country, from Edinburgh to St Austell and from Cardiff to Lowestoft, have established community interest companies. These companies have been established to provide real benefits to their local communities.”
The companies are covering a breadth of provision, from companies established to provide services for whole communities, to companies helping children with special needs, pensioners and young people.
CICs are providing services related to city centre regeneration, they are running restaurants, cafes, and recycling centres, and are providing other health, transport, education and environmental services to communities across Britain.
The Rt. Hon Alun Michael MP, Minister of State for Industry and the Regions, said:
“I am thrilled there are now 100 Community Interest Companies. This shows that the Community Interest Company is an attractive legal vehicle for those operating social enterprises across the country. I am particularly delighted about the high proportion of new start-up businesses choosing this model. This demonstrates that the Community Interest Company structure is meeting the needs of new entrepreneurs looking to use their business for social good.”
“I congratulate John Hanlon and his team for their hard work, especially in providing such thorough advice to people regarding this new legal model.”
John Hanlon continued: I believe the scope for CICs is limited only by people's imaginations and their strong desire to help the communities they live in. It is good to hear about the various ways in which individuals, working together, are striving to make a positive difference in their communities.
Community interest companies are motivated by a desire to create social good. They do not wish, and would not be eligible, to become charities.
There are already many people involved in community enterprise the length and breadth of the country, and this new legal form, the CIC, will help these groups of people, and new organisations and individuals entering the field, to easily and simply set-up to trade for the public good.
There is also an opportunity for much larger concerns to be created, winning contracts, and trading for profit, but with this profit going directly to communities, either here or in developing countries.
CICs can pay directors and in doing so I want them to be able to attract high quality wealth creators through the payment of reasonable salaries. This is an opportunity for these individuals to put their considerable talents to good use with the payback of immense job satisfaction.
John concluded: CICs give an opportunity to people in the community to trade for the community's benefit. The asset lock gives public reassurance that all money generated, or donated will be used for community benefit, and the reporting requirements will show the public at large just what has been achieved by the money generated during the year.