Ethical investments focussed on saving the planet, solving injustice both locally and internationally are burgeoning on the financial markets.  However a few might have highjacked the word ´Ethical´and under the glossy green brochures, it is quite hard to find their ethics.

However now there is an interesting alternative for conscious investors called Community interest companies (CIC). CIC are a new type of limited company designed specifically for those wishing to operate for the benefit of the community rather than for the benefit of the owners of the company. This means that a CIC cannot be formed or used solely for the personal gain of a particular person, or group of people.

CICs can be limited by shares, or by guarantee, and will have a statutory “Asset Lock” to prevent the assets and profits being distributed, except as permitted by legislation. This ensures the assets and profits are retained within the CIC for community purposes, or transferred to another asset-locked organisation, such as another CIC or charity.

A CIC cannot be formed to support political activities and a company that is a charity cannot be a CIC, unless it gives up its charitable status. However, a charity may apply to register a CIC as a subsidiary company.

Julie Court the Regulator of Community Interest Companies announced earlier this year the formation of the 1,000th community interest company, City Healthcare Partnership CIC.

City Healthcare Partnership CIC will provide all primary and community health services across the City of Hull. The company aims to take over and operate a number of health services, including health visiting, district nursing, school nursing, prison healthcare, dentistry, family planning and sexual health. It is being established by the staff of Hull PCT Directly Managed Provider Unit and is a Pathfinder Project.

Julie says “Over the last 24 months we have seen the momentum grow. Community interest companies are permeating society touching the lives of individuals from tiny babies through to the most vulnerable or disadvantaged. The diversity of these organisations and the commitment of those involved is heart warming. They have all willingly committed to an asset lock to ensure their focus is on maximising the benefit to the community they were set up to serve and there is openness and transparency. Anyone will be able to look at their annual community interest report on the public record and see what they have actually done and who was consulted.”

“I have been particularly pleased to see that we have 113 community interest companies active in the health and social sector, providing a spectrum of services from out of hours for a general medical practice, to help for those affected by diabetes. We have registered a wide range of companies which includes the ferry which links the Isle of Skye with mainland Scotland, bus companies, community radio stations, festivals, recycling companies and even a fish and chip shop that ploughs its surpluses back into the community for which it was set up to serve.”

Julie added, “These are exciting times for social enterprise in general and community interest companies in particular. I expect community interest companies to go from strength to strength, delivering services in health, housing, transport and education securing contracts.”

Andrew Burnell, founder Director of The City Health Care Partnership CIC, says

“The establishment of the City Health Care Partnership CIC (a DH Pathfinder Social Enterprise site) is an important step in the proposed development of a new type of organisation for delivering primary and community services within Hull."

A process that although in its infancy at the current time, does hope to see the benefits a local CIC could bring to staff and communities.”

Abbie Rumbold, partner in Bates Wells & Braithwaite the firm of solicitors who assisted The City Healthcare Partnership added,

“1,000 CICs in less than 2 years is a striking success. There is a clear demand for this type of vehicle which is ideally suited for many social enterprises and I fully expect there will be at least 10,000 on the register over the years to come. I am delighted that City Healthcare Partnership is the 1000th CIC to be registered. Having worked on the CIC concept with government and other partners from its origination to its inception as a new legal form until the present day, I firmly believe that the CIC is a valuable addition to the menu of legal choices facing social enterprises. City Healthcare Partnership is a great example of government and entrepreneurial individuals working together for social good.”

For more information, visit www.cicregulator.gov.uk