UK: First anniversary of the CIC

The UK?s Minister for the Third Sector, Ed Miliband, celebrated the creation of almost 350 Community Interest Companies (CIC) since they were introduced by the UK Government 12 months ago.

The CIC model is the first new legal form for a company created in the UK in over 100 years. It allows socially-motivated businesses to make a public, permanent declaration that the company will always work for their community ? putting social and ethical purposes at the core of what they do and creating lasting progressive institutions. It looks set to become the preferred legal structure for new social enterprises in the UK. In May 2006 a co-operative model CIC was developed making it possible for co-operatives to be CICs.
Speaking at a first birthday event for CICs, Ed Miliband said:
?I am delighted to celebrate the first anniversary of Community Interest Companies ? 344 have been created, almost one for every day of the last 12 months. The founders and supporters of CICs have not only achieved lasting changes in people’s lives, they have created lasting agents of change ? by founding organisations that have made a permanent commitment to work for their communities.
The success of CICs and other social enterprises in placing social responsibility at the heart of their business poses a growing challenge to the private sector, to reinforce what is already done in the name of corporate social responsibility and ensure that ethical business activity is real and meaningful. The Government will continue to work to ensure that social enterprises are free from unnecessary regulation, have sufficient access to secure capital and, where they wish to be, are well?placed to help deliver public services.?
Mr Miliband also paid tribute to the CIC Regulator John Hanlon after the vast majority of CICs described their experience of setting up CICs as ?easy? and have welcomed the regulator’s light?touch approach.

www.cicregulator.gov.uk