Part 11Charitable incorporated organisations (CIOs)

CHAPTER 4Conversion, amalgamation and transfer

Conversion of certain bodies to CIO

228Application for conversion by charitable company

1

A charitable company may apply to the Commission to be converted into a CIO, and for the CIO's registration as a charity, in accordance with this section.

2

But such an application may not be made by—

a

a company having a share capital if any of the shares are not fully paid up, or

b

an exempt charity.

3

The company must supply the Commission with—

a

a copy of a resolution of the company that it be converted into a CIO,

b

a copy of the proposed constitution of the CIO,

c

a copy of a resolution of the company adopting the proposed constitution of the CIO,

d

such other documents or information as may be prescribed by CIO regulations, and

e

such other documents or information as the Commission may require for the purposes of the application.

4

The resolution referred to in subsection (3)(a) must be—

a

a special resolution of the company, or

b

a unanimous written resolution signed by or on behalf of all the members of the company who would be entitled to vote on a special resolution.

5

Chapter 3 of Part 3 of the Companies Act 2006 (resolutions and agreements affecting a company's constitution) does not apply to such a resolution.

6

In the case of a company limited by guarantee which makes an application under this section (whether or not it also has a share capital), the proposed constitution of the CIO must (unless subsection (8) applies) provide—

a

for the CIO's members to be liable to contribute to its assets if it is wound up, and

b

for the amount up to which they are so liable.

7

That amount must not be less than the amount up to which they were liable to contribute to the assets of the company if it was wound up.

8

If the amount each member of the company is liable to contribute to its assets on its winding up is £10 or less—

a

the guarantee is extinguished on the conversion of the company into a CIO, and

b

the requirements of subsections (6) and (7) do not apply.