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Mkt1019 social enterprise legal structures

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Tim Curtis
Tim Curtis
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(Some) Legal Structures for achieving social outcomes
 
 
 
AND IN MORE DETAIL
 
Unincorporated Association ,[object Object],[object Object],[object Object],Advantages – what is good? Disadvantages – what is bad? “ Light touch” Regulation Personal Liability Some tax advantages Structure can be unclear Flexible and informal structure Little recognition for finance
Company Limited by Guarantee ,[object Object],[object Object],[object Object],Advantages – what is good? Disadvantages – what is bad? Less tax to pay-(if charity) Restrictions on trustees Limited liability Restrictions on trading Public trust in charities Lots of rules and regulations Tried and tested model - lots of advice
Industrial and Provident Society ,[object Object],[object Object],[object Object],[object Object],[object Object],Advantages – what is good? Disadvantages – what is bad? Limited liability Some restrictions on trading Possible tax reduction Some rules and regulations One member , one vote Restrictions on eligibility- “special reasons” Flexible structure
Community Interest Company ,[object Object],[object Object],[object Object],Advantages – what is good? Disadvantages – what is bad? “ Light touch” Regulation New and untried Limited liability Have to pay normal tax No restrictions on trading Can not be a charity No restrictions on members
Mixed models Charity Trading Co 100% shares Charity Trading Co 51% shares Other investors 51% shares Charity 51% shares Other investors 51% shares Trading Co Asset Unincorporated Association Governance Leases from
[object Object],[object Object]

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Mkt1019 social enterprise legal structures