To incorporate or not…✶ Latin root – ‘corpus’ = body – “artificial legal people”
✶ Unincorporated = no separate body or identity, so individuals are jointly and severally (individually) liable for activities – subject to Common Law
✶ Incorporated = separate body to hold assets, employ people, enter into contracts and sue or be sued! Subject to Company Law.
Types of incorporated bodies..
✶ Companies: several types – governing document is Memorandum and Articles of Association
✶ Three main types in this sector
✶ Limited by Shares or by Guarantee
✶ Industrial & Provident Societies (IPS)
✶ Society for the Benefit of the Community
✶ Bona-Fide Co-operative
✶ Community Interest Company (CIC)
Key considerations…✶ Ownership - Private / Common – (not-for-private-profit)
✶ Management - Community / Collective – everyone /Democratic – a few
✶ Principles / Objectives - Social Enterprise / Co-operative /Development Trusts
Charitable Status✶ Companies > Charity Commission
✶ IPS (SBC) > Inland Revenue
✶ Heads of Charity dictate whether organisation is eligible to receive status
✶ Tax advantages – Business Rates and Corporation Tax
✶ Trustees govern organisation – workers not currently allowed on management
✶ Also governed by Charity Law if company
Community Interest Company (CIC)
✶ Introduced in July 2005 as new type of social enterprise
✶ Statutory “asset lock” to prevent asset and profit distribution except for community purpose
✶ Must operate for the benefit of the community and pass a Community Interest Test
✶ Has limited liability, with shares or guarantee
✶ Must be able to demonstrate community benefit to new CICs regulator (through eg. social accounting)
What to Go For
✶ Co-operatives - organisations which are owned and controlled by their members OR worker co-operative the employees own and control the business
✶ Community Businesses - businesses which are owned and controlled by a community could be a geographical community or ‘a community of interest’
✶ Development Trusts -asset based organisations owned and controlled by the community, often have a range of projects under one umbrella
✶ Trading subsidiaries - the trading arm of a Charity or Trust
Learning
✶ Mem and Arts - Getting foundations right
✶ Governance - Another complete organisation to run and administer
✶ Political - Influenced and controlled
✶ Trustees board - access / skills/ balance/ recruitment
I am an AONB ManagerI am an AONB Manager........ I would want you to think about........ I would want you to think about
Future
✶ Consider benefits that a Trust status can bring
✶ Look at how to access these benefits directly or indirectly - i.e. perhaps no point in us all doing it independently, can we collaborate
✶ 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.
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