View source for Types of Organisation

{{Archive|reason=Tagged as a historic document.}}
This page is 'redundant' as Freegle decided to adopt a new structure in 2014.  This page has therefore been recategorised as an historic document.

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The following is a rough guide of different types of legal structure that Freegle or a trading subsidiary could adopt:

(For more general information about business structures, including other options such as partnerships and limited liability partnerships, see http://www.businesslink.gov.uk.)

{| cellpadding="1.5" cellspacing="0" border="1" align="left"
|- style="font-style:italic; color:green"
!''Legal structure''
!''Summary: most typical features''
!''Ownership, governance and constitution''
!''Is it a legal person distinct from those who own and/or run it?''
!''Can its activities benefit those who own and/or run it?''
!''Assets 'locked in' for community benefit?''
!''Can it be a charity and get charitable status tax benefits?''
!''Differences in the law as it applies in Scotland or Northern Ireland?''
|-
|'''Unincorporated Association Informal'''
|No general regulation of this structure
|Need to make own rules. Nobody owns - governed according to own rules.
|No, which can create problems for contracts, holding property and liability of members.
|Depends on own rules.
|Would need bespoke drafting to achieve this. 
|Yes, if it meets the criteria for being a charity. 
|No specific differences.
|-
|'''Trust'''
|A way of holding assets so as to separate legal ownership from economic interest.
|Assets owned by trustees and managed in interests of beneficiaries on the terms of the trust.
|No, which means the trustees are personally liable.
|Not usually. Trustees/directors can only benefit if trust, court or Charity Commission give permission.
|Yes, if trust established for community benefit.
|Yes, if it meets the criteria for being a charity.
|No, subject to differences between English and Scots trust law.
|-
|'''Limited company (other than Community Interest Company) [[http://www.companieshouse.gov.uk]] '''
|Most frequently adopted corporate legal structure; can be adapted to suit most purposes.
|Directors manage business on behalf of members. Considerable flexibility over internal rules.
|Yes, members' liability limited to amount unpaid on shares or by guarantee
|Yes, but no dividends etc to members if it is a company limited by guarantee.
|Would need bespoke drafting in articles, which could be amended by members.
|Yes, if it meets the criteria for being a charity. 
|Scotland: no. Northern Ireland: separate but similar legislation. 
|-
|'''Community interest company (CIC) [[http://www.cicregulator.gov.uk]'''
|An effective limited company structure for social enterprise with secure 'asset lock' and focus on community benefit.
|As for other limited companies, but subject to additional regulation to ensure community benefits.
|Yes, members' liability limited to amount unpaid on shares or by guarantee.
|Yes, but must benefit the wider community. Can pay limited dividends to private investors and directors can be paid.
|Yes, through standard provisions which all CICs must include in their constitutions.
|No, but can become a charity if it ceases to be a CIC.
|Scotland: no. Northern Ireland: legislation not yet in place.
|-
|'''Industrial & Provident Society (IPS) (Co-operative)'''
|For bona fide co-operatives that serve members’ interests by trading with them or otherwise supplying them with goods or services.
|Committee / officers manage on behalf of members. One member, one vote (regardless of size of respective shareholdings).
|Yes, members liability limited to amount unpaid on shares.
|Yes, but should do so mostly by members trading with society, using its facilities etc, not as a result of shareholdings. 
|Would need bespoke drafting in articles, which could be amended by members.
|No, would have to be constituted as community benefit type of IPS.
|Scotland: no. Northern Ireland: separate but similar legislation.
|-
|'''Industrial & Provident Society (IPS) (Community Benefit Society (BenComm))'''
|Benefit community other than just own members and have special reason not to be companies.
|Like Co-op type, but new legislation provides option of more secure form of 'asset lock'.
|Yes, members liability limited to amount unpaid on shares.
|Must primarily benefit non-members - 'asset lock' applies.
|Yes, asset lock only survives dissolution if new statutory form of asset lock adopted.
|Yes, if it meets the criteria for being a charity.
|Scotland: no. Northern Ireland: legislation not yet in place. 
|-
|'''Charitable Incorporated Organisation'''
|First ready-made corporate structure specifically designed for charities.
|Similar to company but with different terminology, eg ''charity trustee'' instead of ''director''.
|Yes, members either have no liability or limited liability.
|Members are not permitted to benefit and charity trustees are only able to benefit if constitution, court or Charity Commission give permission.
|Yes.
|Cannot be anything but a charity, and must meet the criteria for being a charity. 
|Scotland: separate but similar legislation and regulator. Northern Ireland: legislation not yet in place.
[[http://www.fsa.gov.uk/pages/doing/small_firms/msr/societies/index.shtml]]
[[http://www.charity-commission.gov.uk/registration/charcio.asp]]
|-
|}

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[[Category:Historic documents]]