c) The principal aim of the Festival is to support the local community, by becoming a limited company the fulfilment of this aim has the protection of a legal framework and is totally transparent to the community and the festival’s sponsors and partners and defines that the company’s profits and assets can only be used for the benefit of the community. Further, the company must provide an annual report and accounts to be submitted to Companies House.


2. What is a community interest company?
“Community Interest Companies (‘CICs’ for short) are a new type of company. They are companies established to trade for the community good. The Companies (Audit, Investigations and Community Enterprise) Act 2004 (‘the Act’), and The Community Interest Company Regulations 2005 made under the Act, establish the legislative framework for CICs.

CICs, and the need for them, have been subject to a wide-ranging consultation and discussion with those in the social enterprise sector (a sector which is growing fast in the UK). The overwhelming response to these discussions has been that this flexible form is a welcome addition to the options open to those who wish to pursue trade for social benefit.

The two main features that distinguish CICs from ‘normal’ companies are the asset lock and the Community Interest Statement and Report. Under the asset lock provisions, the assets and profits must be permanently retained within the CIC, and used solely for community benefit, or transferred to another organisation which itself has an asset lock, such as a charity, or to another CIC. For instance, a charity could form a CIC to be its “trading arm” and this CIC could then transfer all its surpluses to the charity. Please note that existing charities can convert to CICs, subject to regulatory permission, but they will lose their charitable status in doing so.

With every application to form a CIC, a Community Interest Statement must be lodged, with the usual documents, seeking company registration. This Community Interest Statement, signed by all the company’s intended or actual directors, must certify that the company is formed to serve the community rather than private profit motives. It must also describe the activities the CIC intends to engage in to further this community profit motive.”

3. Who is ‘The Community’?
“The Act, taking a sensible and pragmatic approach to this question, says a company satisfies the community interest test if a reasonable person might consider the activities the CIC is undertaking are being carried on for the benefit of the community. The Regulator must decide whether applicants for CIC status satisfy this test. His decisions are subject to review by an Appeals Officer (appointed by the Secretary of State).”

4. The Community Interest Statement
This is one of the documents that must be filed on formation of or conversion to a CIC. It must be in the form approved by the CIC.

5. The community Interest Statement for the Emsworth Food Festival
Emsworth Food Festival has been organised by an unincorporated organisation called The Emsworth Food Festival for 5 years to promote a food festival with the following aims and objectives:
(a) to encourage residents and people living on the periphery of the village to shop in Emsworth;
(b) to promote Emsworth as a destination for visitors;
(c) to establish Emsworth as a “unique place to eat, visit and live”;
(d) to encourage local businesses to work together and with each other;
(e) to establish an annual cultural event, with emphasis on food, that enriches the quality of life in the village of Emsworth;
(f) to contribute, when funds allow, to projects in the local community.
A copy of the constitution of the Emsworth Food Festival is attached and may be viewed HERE.
The festival is held over a period of 3 days in September each year. It has been a great success and has significantly increased in size over the years.
The committee has decided that the Emsworth Food Festival should be incorporated as a community interest company in order to ensure the continuing benefit of the event for the local community and to protect it from commercial and private interests.

6. How will The Emsworth Food Festival CIC operate?

The operation of the company is set out in the Memorandum and Articles of Association. These provide a frame work which defines who might be involved in the company as “members” and how decisions may be made guided by the Festival’s aims set out in the constitution which remains unchanged.

Essentially the festival’s organisation will continue much as it has done hitherto with a committee of members and key partners who will be responsible for the organisation and running. There will continue to be close liaison with the community and a public “wash-up” meeting each year.

In particular, it should be noted that neither the directors nor members shall receive any form of enumeration and that the Festival will continue to be organised and run, as has been the case since its inception in 2001, entirely by unpaid volunteers. Please refer to The Constitution which may be viewed HERE

It is intended that the initial members shall be those who have assisted the organisation of the festival in previous years including representatives of the various business sectors and others who have a particular expertise together with the original subscribers to the company.

The formal procedure for selecting members  can be viewed HERE.