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Where is the Cap for profit in Civil Society?
From the reforms of the NHS and the crisis in Social Care to name just two challenges, through to the opportunities such as using CIC Shares to dramatically increase the participation of employees and grass-roots investors, there is much to play for
The CIC Regulator is reviewing the changes made in 2010 and the CIC Association CIC is inviting all Civil Society organisations to have their say on how CIC Shares should be developed.
John Mulkerrin of CIC Association CIC said:
'In an ever changing world of payment by results, cuts and the desperate need for innovation any changes could have huge implications for Civil Society as a whole moving forward. At what rate does sharing surplus from trading efficiency within Civil Society, or rewarding entrepreneurs for starting up CICs and making them a success become profiteering?
From the reforms of the NHS and the crisis in Social Care to name just two challenges, through to the opportunities such as using CIC Shares to dramatically increase the participation of employees and grass-roots investors, there is a lot of good that can be done if we get this balance right.
This review is the last chance in a long time to make any meaningful changes to the caps and I hope we make it count.'
The Regulator of Community Interest Companies, Sara Burgess said:
'Following my review in 2009 which resulted in an uplifting of the Dividend Cap I stated that I would look again at the changes in 3 years time to see if they have delivered the intended benefits. I am now working with the CIC Association CIC to gather wider evidence so I can take an informed view about whether or not the limits should be changed again, and if so, how?'
The Stakeholder survey can be accessed here: http://www.ezsurvey.org.uk/
Stephen Lloyd of BWB and John Mulkerrin of CIC Association CIC will also be co-hosting an event in London on 14thDecember as part of the review, full details can be found here: http://thecicdividendcapreview2012.eventbrite.com/
Notes to Editors:
1. CICs are a type of limited company created by the Companies (Audit, Investigations and Community Enterprise) Act 2004 and the Community Interest Company Regulations 2005 (SI 2005 no 1788).
2. The Community Interest Company Regulator is appointed by the Secretary of State for the Department of Business, Innovation and Skills.
3. The CIC Regulators website is at http://www.bis.gov.uk/
4. The CIC Association CIC website is at http://www.cicassociation.org.uk/