26 March 2003
New Community Interest Companies (CIC) will enable entrepreneurs to use their profits and assets for the public good. CICs will be registered as companies in the usual way, but with an additional requirement to show that they are dedicated to the community interest.
Under the plans, investors will not be allowed to skew the priorities of a CIC away from its central pursuit of the community interest. CICs will report annually to a new independent regulator to ensure they are meeting their public interest obligations.
Secretary of State for Trade and Industry Patricia Hewitt said that the sort of people who will want to set up a CIC will typically be entrepreneurs who want to do good in a form other than a charity. It is hoped that opportunities created by CICs will be a huge boost to many of the UK’s most deprived areas.
The Secretary of State said:
"There is no reason why, for example, a group of residents who care about a community transport venture or local environmental improvement scheme shouldn’t actually own it and run it in trust for the wider community."
The plans were released in a consultation paper ‘Enterprise for Communities: Proposals for a Community Interest Company invites views on proposals for a new type of company, the Community Interest Company. The consultation closes on 18th June 2003.
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