Following the success of the new legal structure of the Charitable Incorporated Organisation (CIO), introduced in England and Wales in 2013, the government has issued draft enabling regulations on converting existing organisations to the model.
Some charities that have been established with the company structure may wish to convert to the CIO structure, and some community interest companies may also wish to become charities and adopt the CIO structure. These draft regulations would provide a simple process for them to do so.
It also sets out a provisional timetable for phased implementation, to assist the Charity Commission in managing anticipated demand for conversions.
The consultation invites feedback on the proposed conversion process, and associated consequential changes.
See consultation web page, responses by 5pm 10th June.
Or read Sandy Adirondack’s Legal Update for more background.
From Bates Wells Braithwaite Briefing:
Proposed conversion timetable for charitable companies to CIOs:
- 1 October 2016: Charitable companies with an annual income greater than £500,000;
- 1 December 2016: Charitable companies with an annual income between £250,000 and £500,000;
- 1 February 2017: Charitable companies with an annual income between £100,000 and £250,000;
- 1 April 2017: Charitable companies with an annual income between £25,000 and £100,000; and
- 1 July 2017: Charitable companies with an annual income of less than £25,000
Proposed conversion timetable for CICs to CIOs: 1 October 2017
As part of the process, section 1099(3) of the Companies Act 2006 would be amended to add charitable incorporated organisations to the list of bodies to which the existing index of company names maintained by the Registrar of Companies relates. This would prevent new companies from being registered if their proposed name were the same as or too similar to the name of a CIO.