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[LUG]Re: Lug funds

 

Dear All,

We do not need to be either a charity or a CIC. Either of those options
involves a lot of work and unnecessary expense.

All we need to do is to establish a Legal Entity as a simple Community
Association or Club. I outlined that nice simple system in my first
email. Once we have established a simple Legal Entity, we can open a
bank account. The ownership of the Legal Entity should be the
Membership in Perpetuity.

Helen McCall

On Mon, 13 Oct 2025 13:44:56 +0100
Henry Bremridge via list <list@xxxxxxxxxxxxx> wrote:

> On Mon, Oct 13, 2025 at 09:55:27AM +0100, Julian Hall wrote:
>  
> > Hi All,
> > 
> > Rather than a full charity what about a Community Interest Company?
> > (CIC) The bar is lower for a CIC than a charity, albeit you do need
> > to register the names and details of Directors with Companies House.
> >   
> 
> https://www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters
> 
> When deciding on the CICs activities you should consider the
> following:
> 
>     What activity do you want to undertake and how will it benefit
> the community? Who will be the owners, managers, directors,
> shareholders or guarantors? How will it be funded?
>     How will the surpluses or profits be used?
>     Will you be engaging in any campaigning or political activities?
> (Companies involved in these activities are not eligible to become
> CICs) Who will be nominated as the asset locked body in your Articles
> of Association? Will being a company with limited liability, a
> mandatory Asset Lock, extra reporting requirements and designed for
> social enterprise suit your needs?
> 
> 
> https://www.gov.uk/prepare-file-annual-accounts-for-limited-company
> 
> While it does not say an accountant has to prepare the accounts for
> CIC, it does say that 
> 
> Statutory accounts must include:
> 
>     a ‘balance sheet’, which shows the value of everything the
> company owns, owes and is owed on the last day of the financial year
> 
>     a ‘profit and loss account’, which shows the company’s sales,
> running costs and the profit or loss it has made over the financial
> year
> 
>     notes about the accounts
> 
>     a director’s report (unless you’re a ‘micro-entity’)
> 
> You might have to include an auditor’s report - this depends on the
> size of your company.
> 
> The balance sheet must have the name of a director printed on it and
> must be signed by a director. Accounting standards
> 
> Your statutory accounts must meet either:
> 
>     International Financial Reporting Standards
> 
>     New UK Generally Accepted Accounting Practice
> 
> IF DCGLUG goes this route, I presume the directors will want an
> accountant to sign off to ensure that these standards are met. There
> goes what £500 a year? Certainly more than £200
> 
> 
> 2025-10-13 13:41:35
> 
> 

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