16. 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 Law
I Incorporated = separate body to hold assets, employ people,
enter into contracts and sue or be sued! Subject to
Company Law.
17. Types of incorporated
bodies..
I Companies: several types – governing document is Memorandum and Articles of
Association
I 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)
18. Key considerations…
I Ownership - Private / Common – (not-for-private-profit)
I Management - Community / Collective – everyone /Democratic
– a few
I Principles / Objectives - Social Enterprise / Co-operative
/Development Trusts
19. Charitable Status
I Companies > Charity Commission
I IPS (SBC) > Inland Revenue
I Heads of Charity dictate whether organisation is eligible to
receive status
I Tax advantages – Business Rates and Corporation Tax
I Trustees govern organisation – workers not currently
allowed on management
I Also governed by Charity Law if company
20. Community Interest Company
(CIC)
I Introduced in July 2005 as new type of social enterprise
I Statutory “asset lock” to prevent asset and profit distribution except
for community purpose
I Must operate for the benefit of the community and pass a Community
Interest Test
I Has limited liability, with shares or guarantee
I Must be able to demonstrate community benefit to new CICs
regulator (through eg. social accounting)
21. What to Go For
I Co-operatives - organisations which are owned and controlled by their
members OR worker co-operative the employees own and control the
business
I 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 umbrella
I Trading subsidiaries - the trading arm of a Charity or Trust
24. Learning
I Mem and Arts - Getting foundations right
I Governance - Another complete organisation to run
and administer
I Political - Influenced and controlled
I Trustees board - access / skills/ balance/ recruitment
25. I am an AONB Manager
........ I would want you to think about
26. Future
I Consider benefits that a Trust status can bring
I Look at how to access these benefits directly or indirectly -
i.e. perhaps no point in us all doing it independently, can we
collaborate
I 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.