If you’re reading this tomorrow, you will have sadly missed your chance to feed into the CIC regulator’s consultation on Dividend Caps and Performance Related Interest.
Community Interest Companies (CICs) are some new structures set-up by the government in 2005. The idea was to provide a company formation (or some company formations) that would be definitively social enterprise – as opposed to charity or ‘straight’ business. My company is one. We have our own regulator.
The current topic of conjecture is whether CIC’s that are limited-by-shares – so can raise cash by selling equity stakes to people hoping to get a share of the profits, should the company make a profit – should keep their current tight-limits on the % of profits they can distribute to their investors.
It would be interesting to know how many currently registered CICs have reached a level of profitability where this has been a problem. Or, in fact, how many existing CICs have sucessfully sold any equity.