Charitable Incorporated Organisation

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N.B. this legal form does not yet exist at the time of writing (now expected 2009), but see below for an outline of the proposed legal form based on information available.

Corporate Status.

Incorporated

Terminology: governing document

Unknown as yet, although a background discussion paper talks of "a full constitution written in plain English" (or Welsh).

Terminology: governing body

Presumably "the trustees" in common with other charities, whatever their legal form.

Management/governance structure

It is proposed to have "foundation" and "association" formats, i.e. options with and without a participating membership.

Membership

As above.

Governing legislation

Charities Act 2006 and any subsequent secondary legislation.

Charitable status available?

The CIO will only be available to charities and will be administered by the Charity Commission for England and Wales.

Profit distribution permitted?

No.

Examples of use

The CIO is intended initially to be a another option for organisations whose members wish to limit their liability under a corporate structure and register as a charity.

Participation issues

Members' powers are likely to be less than in a company as all of a CIO's resources are intended to be applied to the advantage of beneficiaries, present and future.
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