Q&As

Can councils provide services to a Community Interest Company?

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Published on LexisPSL on 26/10/2016

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • Can councils provide services to a Community Interest Company?
  • What is a CIC?
  • Can a local authority supply services to a CIC?
  • Local Authorities (Goods and Services) Act 1970
  • Local Government Act 2003

What is a CIC?

A community interest company (CIC) is a corporate vehicle for running a business which wishes to trade for a non-charitable social purpose.

For information on how to form a CIC, what safeguards are in place to ensure that a CIC only uses its assets, income and profits for the benefit of the community, and how CICs are regulated and terminate, see Practice Note: Community interest companies.

Can a local authority supply services to a CIC?

Local Authorities (Goods and Services) Act 1970

Local authorities can trade (and make a profit) with other public bodies in the provision of goods and services by virtue of, and subject to the restrictions in, se

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