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.
Basic requirements for setting up a community company
Learn more about what you need to set up a community company.
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’.
Who are the shareholders and directors of a community company?
Learn more about the unique role of shareholders and directors in a community company.
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.
Additional important information
Learn more about the difference between a community company and a co-operative and a trust.