CICs and companies limited by guarantee should have three unrelated trustees
Please be aware that in order to pass our due diligence requirements, Community Interest Companies (CICs) and companies limited by guarantee should have three unrelated directors registered with Companies House. We have in the past sometimes funded organisations with just two directors, from 1st March 2021 we will be tightening up on this.
If you are a limited company that also has charity registration, then it’s your charity details that we focus on – this change is really targeted at those organisations that ONLY have company status.
From 1st March all new-to-us organisations will need to meet the three unrelated director standards. If we have funded you previously with just two directors, we can accept applications from you as you are currently set-up for the next six months, but from 1st September 2021 we will be unable to do so.
We realise that in order to register with Companies House, a CIC or company limited by guarantee need only identify one director. However, we think it’s right to apply the same minimum to CICs/companies as we (and the Charity Commission) do to registered charities and constituted community groups, where three unrelated trustees is the minimum.
Please contact email@example.com with any queries.