Issues regarding legal and governance structures are central to the social enterprise movement. As businesses driven by their social mission, social enterprises often seek to protect their mission through their choice of legal or governance structure. As a growing movement, good governance is essential if the movement is to thrive and be sustainable. It provides legitimacy, accountability and transparency for all stakeholders as well as the consumers being served.

The diversity of the social enterprise movement in part results from the use of a wide variety of legal and governance forms.

With regard to legal forms some are set up as industrial and provident societies (the usual form for co-operatives and community benefit societies), while others choose the limited liability company (either companies limited by guarantee or shares). Since July 2005, social enterprises have also been able to set up as a Community Interest Company (CIC), a form of limited liability company designed specifically for social enterprises.

Similarly, many social enterprises are characterised by non-traditional governance and ownership structures. They can be owned by their employees, consumers/users, trustees, public bodies, the wider community or a combination of different stakeholder groups.

We are working to ensure there is a level playing field for social enterprises using different legal forms, both in terms of cost and effective regulation, as well as making sure that the benefits of their governance structures are recognised.

In 2004 we played an important role in the creation of the legal form particularly for social enterprise, the Community Interest Company (CIC). We have also worked on the modernisation of Industrial and Provident Society legislation.

Events

The CIC forum is intended to provide an opportunity to discuss some of the issues faced by CICs, increase collaboration and share best practice.