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gray_b

Any benefits becoming a CIC (community interest company)

I am just a macro business running a horticultural business as a sole prop and not as a ltd company.

But would there be any advantages of me becoming a CIC. I think I could pass the community interest test. But I cannot find any benefits in comparison to being a sole prop on the web, only the rules and regs.

I suppose I would need a proper company name.

Any advice or guidance please, from any CIC's already running or any business legal eagles.
Hairyloon

It opens up potential sources of funding, e.g. Lottery.
welsh veg grower

If you are a 1 man bad why would you do that? lots of work and rules to comply with for a start. The CIC status is usually used for community groups who are not for profit or social eneterprises who dont want to go down the full charity route.

A cic has a lock on assets so if you have assets for your business and put them into the cic you would be locking them into the cic.

Not sure what your business is but there must be a community benefit and then you would establish it with you as a director who is also paid so then you would be an employee of the cic rather than self employed.

not had much expereince of cic's but my understanding is that its a much lighter touch approach than the Charity commision but more work than just a limited company.
welsh veg grower

By the way I'm no legal eagle, but a business consultant workinng with not for profit's, charities and community groups.
gray_b

I was trawling the net and came up with http://www.tidnorwood.org.uk/ which said in there intro

TIDNOR WOOD ORCHARDS CIC can trade and make profits (although there are restrictions on their distribution), but most importantly, the company's assets have a lock applied to them - they cannot be easily disposed of other than to a registered CIC or to another charity. In this way, we hope to be able to secure our orchard land and other assets safe for future generations.

The thing is I have an orchard that I was beginning to think how I could preserve it for the future, when I am not here. It seems a waste after all my efforts, for my heirs to sell it or grub out all the trees.
Hairyloon

Might be a plan then.
Shan

I was trawling the net and came up with http://www.tidnorwood.org.uk/ which said in there intro

TIDNOR WOOD ORCHARDS CIC can trade and make profits (although there are restrictions on their distribution), but most importantly, the company's assets have a lock applied to them - they cannot be easily disposed of other than to a registered CIC or to another charity. In this way, we hope to be able to secure our orchard land and other assets safe for future generations.

The thing is I have an orchard that I was beginning to think how I could preserve it for the future, when I am not here. It seems a waste after all my efforts, for my heirs to sell it or grub out all the trees.


Put a clause in your will.
welsh veg grower

I was trawling the net and came up with http://www.tidnorwood.org.uk/ which said in there intro

TIDNOR WOOD ORCHARDS CIC can trade and make profits (although there are restrictions on their distribution), but most importantly, the company's assets have a lock applied to them - they cannot be easily disposed of other than to a registered CIC or to another charity. In this way, we hope to be able to secure our orchard land and other assets safe for future generations.

The thing is I have an orchard that I was beginning to think how I could preserve it for the future, when I am not here. It seems a waste after all my efforts, for my heirs to sell it or grub out all the trees.


Yes I also note they are a trust and I don't see any enterprise activity as such. It's also not that clear who is running ht business on the board etc. so I can see why you see them as the me as you with the orchard but I wonder if the activities are he same. Without knowing more about your work / business it's hard to say.

As with everything there are pros and cons for examThere are no tax breaks for a cic (tax is payable on profits) What about transferring the assets I.e the orchard into a ltd company (a cic is a ltd company) and locking in the orchard to the business.

Also you could speak to The cic regulator for advice and to see if there is anyone currently supporting groups who are considering being a cic I think the co-operative used to In Wales it's www.walescooperativecentre.org.uk I think not sure in England

Good luck with that
Rob R

I was trawling the net and came up with http://www.tidnorwood.org.uk/ which said in there intro

TIDNOR WOOD ORCHARDS CIC can trade and make profits (although there are restrictions on their distribution), but most importantly, the company's assets have a lock applied to them - they cannot be easily disposed of other than to a registered CIC or to another charity. In this way, we hope to be able to secure our orchard land and other assets safe for future generations.

The thing is I have an orchard that I was beginning to think how I could preserve it for the future, when I am not here. It seems a waste after all my efforts, for my heirs to sell it or grub out all the trees.

Put a clause in your will.

That's no guarantee - someone in North Yorkshire died last year having written his son out of the will because he thought the son would squander the assets (as he'd dropped out of Ag college & already worked his way through a previous 38k inheritance in nine months) and instead left it all to one of the daughters. The will was overturned in court and the son got a hefty wedge (3/4) of the assets. It seems like a will is only worth the paper it is written on as long as all parties are in agreement.
Hairyloon

That's no guarantee - someone in North Yorkshire died last year having written his son out of the will...
The will was overturned in court...
Do you know why/how?
Quote:
It seems like a will is only worth the paper it is written on as long as all parties are in agreement.

Generally speaking, a properly written will largely does what it is supposed to do. It is no easy task to overturn one... nor should it be.

But on the subject in question, I think you are quite right: it is no guarantee.
Rob R

He was an only son with three sisters & apparently had been verbally promised that he'd take over the farm, throughout his life. I didn't understand why it wasn't split equally between the four of them but it seems only the youngest & oldest inherited anything significant. Makes a mockery of will writing IMO & a betrayal of the dead man's wishes. Hairyloon

He was an only son with three sisters & apparently had been verbally promised that he'd take over the farm, throughout his life.
I am not convinced that is enough to overturn a will, but unless you've got a copy of the court judgment then I expect we'll never know for sure.
Quote:
Makes a mockery of will writing IMO & a betrayal of the dead man's wishes.

I can see it from the other side. A friend of mine did lots of work for an elderly aunt on a promise in the will, and she left most of it to charity.
My understanding was that was just tough.
vegplot

I was trawling the net and came up with http://www.tidnorwood.org.uk/ which said in there intro

TIDNOR WOOD ORCHARDS CIC can trade and make profits (although there are restrictions on their distribution), but most importantly, the company's assets have a lock applied to them - they cannot be easily disposed of other than to a registered CIC or to another charity. In this way, we hope to be able to secure our orchard land and other assets safe for future generations.

The thing is I have an orchard that I was beginning to think how I could preserve it for the future, when I am not here. It seems a waste after all my efforts, for my heirs to sell it or grub out all the trees.

Have you thought about a restrictive covenant instead?
Hairyloon

Have you thought about a restrictive covenant instead?
You seem to say that like everybody should know what it means. Confused

I suggest you set up a Trust, with the purpose to manage the orchard for <defined purpose>, but beyond that, I'm not going to pretend I know what I am talking about. Confused
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