News: Charity Commission Publishes Guidance on Charitable Incorporated Organisations

The Charity Commission has published guidance on the charitable incorporated organisation legal form, which was introduced by the Charities Act 2006 but has not yet been brought into force.

The form will allow charities to be incorporated organisations that are not companies, meaning they will need to register with the Charity Commission but not with Companies House.

The 2006 act introduced the form, but secondary legislation is needed in order for it to be used. No date has been set for it to start.

The guidance includes two models for the governance of a CIO – a foundation model under which the only voting members would be the charity trustees, and an association model for charities that have a wider, voting membership. It says trustees of a CIO will normally have limited or no liability for its debts.

The commission’s guidance covers foundation and association models and can be viewed on the Charity Commission website by clicking here