Charitable incorporated
organisations delayed again
The launch of the charitable incorporated organisation - a new legal form for charities
- has been delayed again. It is now not expected to become available until late
2010 or early 2011.
The CIO format will allow charities to incorporate without registering with both
the Charity Commission and Companies House.
Provisions for the establishment of CIOs were included in the Charities Act 2006
and the new format was initially expected to be available from summer 2008. The
Office of the Third Sector now says that the plan to have the model available by
this spring has been scrapped because there will not be enough time in the current
parliamentary session to pass the necessary secondary legislation.
Also officials are still working through some operational issues raised by the Charity
Commission, such as concerns about the regulator's ability to manage information
on the liabilities of CIOs.
We understand the aim now is to take the legislation through as soon as possible
in the new Parliament, with the CIO becoming available either later in 2010 or early
in 2011. Updated draft regulations will be published in due course. Earlier this
month, the Office of the Third Sector announced that a proposed consolidation of
charity law would also have to wait until the next Parliament.
In the light of this development, it is likely that those wishing to use an incorporated
format will still continue to use the company limited by guarantee.
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For More Information Contact:
Mark Johnson
TPP Law Limited
53 Great Suffolk Street
London SE1 0DB
t 020 7620 0888
f 020 7620 0778
e info@tpplaw.co.uk
Email:
Mark
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