Part 2

Community interest companies

Becoming a community interest company

New companies
36
1
If a company is to be formed as a community interest company, the documents delivered to the registrar of companies under section 10 of the Companies Act 1985 (memorandum, articles and statement of names and particulars of directors and secretary) must be accompanied by the prescribed formation documents.
2
“The prescribed formation documents” means such statutory declarations or other declarations or statements as are required by regulations to accompany the documents delivered under that section, in such form as may be approved in accordance with the regulations.
3
On receiving the documents delivered under that section and the prescribed formation documents the registrar of companies must (instead of registering the memorandum and articles)—
a
forward a copy of each of the documents to the Regulator, and
b
retain the documents pending the Regulator’s decision.
4
The Regulator must decide whether the company is eligible to be formed as a community interest company.
5
A company is eligible to be formed as a community interest company if—
a
the memorandum and articles comply with the requirements imposed by and by virtue of section 32 and the company’s name complies with section 33, and
b
the Regulator, having regard to the documents delivered under section 10 of the Companies Act 1985 (c. 6), the prescribed formation documents and any other relevant considerations, considers that the company will satisfy the community interest test and is not an excluded company.
6
The Regulator must give notice of the decision to the registrar of companies (but the registrar is not required to record it).
7
If the Regulator gives notice of a decision that the company is eligible to be formed as a community interest company, section 12 of the Companies Act 1985 (registration of memorandum and articles) applies; and if the registrar registers the memorandum and articles he must also retain and record the prescribed formation documents.
8
The certificate of incorporation under section 13 of the Companies Act 1985 (effect of registration) is to contain a statement that the company is a community interest company.
9
The fact that the certificate of incorporation contains such a statement is conclusive evidence that the company is a community interest company.
10
If the Regulator decides that the company is not eligible to be formed as a community interest company, any subscriber to the memorandum may appeal to the Appeal Officer against the decision.