Part 2Community interest companies

Becoming a community interest company

40F1Becoming a community interest company: Scottish charities

(1)

F2A F3company that is a Scottish charity may not become a community interest company.

(2)

F2If a F3company that is a Scottish charity purports by special resolution to change its name to comply with section 33, the Commissioners of Inland Revenue may apply to the Court of Session for an order quashing any altered certificate of incorporation issued under section 28(6) of F4the 1985 Act.

(3)

Regulations may repeal subsections (1) and (2); and subsections (4) to (7) have effect on and after the day on which regulations under this subsection come into force.

(4)

A F3Scottish charitable company may not F5become a community interest company without the prior written consent—

(a)

if the company’s registered office is situated in Scotland, of the Scottish Charity Regulator, or

(b)

if the company’s registered office is situated in England and Wales (or Wales), of both the Scottish Charity Regulator and the F6Charity Commission.

(5)

If a F3company that is a Scottish charity contravenes subsection (4)(a), the Scottish Charity Regulator may apply to the Court of Session for an order quashing any altered certificate of incorporation issued under F7section 38A.

(6)

If a F3company that is a Scottish charity contravenes subsection (4)(b), the Scottish Charity Regulator or the F8Charity Commission may apply to the High Court for such an order.

(7)

If a F3company that is a Scottish charity becomes a community interest company, F9it shall continue to be under a duty to apply–

(a)

any property previously acquired, or any property representing property previously acquired,

(b)

any property representing income which has previously accrued, or

(c)

the income from any such property.

in accordance with its purposes as set out in its entry in the Scottish Charity Register immediately before it became a community interest company.

F10(8)

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F11(9)

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