Q&As

Can a CIC be a partner in a general partnership?

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Produced in partnership with Clive Blackwood of Lamb Chambers
Last updated on 03/10/2017

The following Corporate Q&A produced in partnership with Clive Blackwood of Lamb Chambers provides comprehensive and up to date legal information covering:

  • Can a CIC be a partner in a general partnership?

Can a CIC be a partner in a general partnership?

The principal legislation governing Community Interest Companies (CICs) is contained in:

  1. Companies Act 2006

  2. Companies (Audit, Investigations and Community Enterprise) Act 2004 (C(AICE)A 2004)

  3. Community Interest Company Regulations 2005, SI 2005/1788 (the CIC Regulations)

  4. Community Interest Company (Amendment) Regulations 2014, SI 2014/2483

C(AICE)A 2004, s 26 provides that a CIC can be:

  1. a company limited by guarantee (with or without a share capital)

  2. a private company limited by shares, or

  3. a public company limited by shares

A general partnership is defined in section 1 of the Partnership Act 1890 (PA 1890) as being ‘the relation which subsists between persons carrying on a business in common with a view to profit’. As such the partners in a partnership can be individuals, corporations, other partnerships or a combination of these (section 5 of Schedule 1 to the Interpretation Act 1978 (IA 1978)). It is therefore possible to have a partnership where some or all of the partners are limited companies.

As CICs are intended to use their assets, income and profits for the benefit of the community, the CIC Regulations, SI

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