Community Interest Company Shareholders Agreement
This means that many objectives that are not eligible for public utility can legitimately be pursued through a CIC. Company Law Solutions offers shareholder agreements Shareholders own the company on its shares and have ultimate control over it. If there are two or more shareholders, it is important to ensure that their financial interests in the company are protected by the correct provisions of the company`s articles of association or in a shareholders` agreement. Any shareholder who does not have a majority of the shares is potentially threatened and requires legal protection. A Community-interest company shares many of the characteristics of a limited liability company, since it is registered and the financial liability of its directors is limited to a nominal amount. Note that it is also possible for a community interest business to be set up by a charity, much like it could set up a non-profit commercial company – so the two are sometimes complementary options and not entirely different and independent. The CIC would then often be used as the “commercial arm” of the parent organization, meaning that they still enjoy most of the benefits of a CIC. Compared to a charity, there are some specific disadvantages of companies of community interest: being a shareholder does not even give the right to be a director, and this is usually one of the provisions of a shareholder contract. Most agreements go further by providing a list of management decisions that require the agreement of all (or a certain percentage) of directors. . . .