Structure
Legal Form:
Needham Market Internet Cafe Community Interest Company
Company No. 5700276
Company Limited by Guarantee with a large membership.
Like any organisation, a company is made up of several groups of people such as members, directors, managers, and other employees. Unlike other kinds of organisation, such as clubs or partnerships, a company has its own artificial “legal personality” which is separate from any of the “natural” persons (i.e. individuals or “real people”) associated with it.
In a limited company, the liability of members to the company is strictly limited (in the absence of fraud or other exceptional circumstances). In the case of a company limited by guarantee, members’ liability is limited to the (usually nominal) value of the sums they have agreed to pay by way of satisfaction of the company’s liabilities in the event of its being wound up.
In practice each of the guarantors usually guarantees a nominal sum such as £1 but there is no reason why a principal supporter of the company should not in effect underwrite its activities by guaranteeing a larger sum. This would, of course, provide them with no preferential or additional decision-making powers
This structure is designed for use by private companies limited by guarantee, which have more members than they have directors. Although it assumes that the directors will take most day to day decisions about the company’s business, it also gives the members a strong role in controlling the overall governance of the company.
Community Interest Company.
Community Interest Company's (CIC's) are a new type of limited company for businesses or other activities in the social enterprise sector of the economy. Social enterprises are usually defined as businesses that trade with a social purpose.
The CIC framework is particularly suitable for those who wish to work within the relative freedom of the familiar limited company framework without either the private profit motive or charity status.
The asset lock provisions give confidence to those wishing to fund CICs and those dealing with CICs that the assets and profits will primarily be devoted to the benefit of the community rather than rewarding the owners or investors. The CIC annual report will ensure transparency and that those affected by and benefiting from the CIC’s activities will be properly recognised as stakeholders.
CIC's must make a community interest statement declaring that their activities will be for the benefit of the community and how this will be achieved. They must also satisfy (in the option of the Regulator) a community interest test. The test is whether a reasonable person might consider the CIC’s activities are carried on for the benefit of the community.