A guide to community companies

If you learn nothing else, this is what you need to know about community companies:

  • A community company must have a community interest, that is, where the community will benefit from the company’s activities.
  • Community companies cannot make any distributions of funds or pay any dividends to its shareholders. The community must receive the benefit.
  • Community companies cannot make loans to directors or shareholders.
  • There is a ‘lock’ on the disposal of assets of the community company.
  • Directors must prepare a report on the activities of a community company each financial year.



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Goals of a community company

Learn more about why you might want to have a community company.

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Basic requirements for setting up a community company

Learn more about what you need to set up a community company.

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What does a community mean?

Learn more about what a community means under the law, and what it means when the law says the community company must be in the ‘community interest’.

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Who are the shareholders and directors of a community company?

Learn more about the unique role of shareholders and directors in a community company.

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Special rules for community companies

Because the company exists to benefit a community, there are some special rules to protect the community. Learn more about them here.

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Additional important information

Learn more about  the difference between a community company and a co-operative and a trust.

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