Community Interest Company (Amendment) Regulations 2009

If the board is split equally, any proposal put to the board falls, so there is no deadlock. Those are the usual rules of debate: if there is no majority and there is no casting vote, the proposal falls. Some proposals were dropped in the light of the responses. I was asked what those proposals were and what the concerns about them were. One proposal was to permit the regulator to take into account the impact of a prospective community interest company’s activities on the wider community and public interests. Several respondents felt that this would fundamentally alter the role of the regulator, involving her in potentially contentious and subjective decisions. It was also noted that on many issues there would be differing opinions on what constituted community benefit. Of the two other proposals, the first was to commit public or regulatory bodies—for example, local authorities that may have set up a community interest company—to make representations to the regulator for a share of any residual assets in the event of a winding up. The final one was to deal with the consistency of the regulator, requiring the regulator’s consent to a transfer of assets for less than full value to an asset-locked body, but not requiring consent when the company makes a transfer for the benefit of the community. In both cases, while there was support for the aims of the proposals, practical issues were raised, which we felt needed further consideration with stakeholders. The noble Lord, Lord De Mauley, asked how many people were employed by the regulator, the answer to which is eight. The cost in the current financial year is £515,000. We will write to confirm details of the regulatory framework. There may have been a question about performance, as well. I believe that I have covered all the questions and commend the order to the Committee. Motion agreed.