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Charities Act 2011

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This is the original version (as it was originally enacted).

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.

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