The Community Interest Company (Amendment) Regulations 2014

• Citation: S.I. 2014/2483
• Sections: 8

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Community Interest Company (Amendment) Regulations 2014 and come into force on 1st October 2014.

(2) The amendments made by these Regulations apply to any dividend declared, or proposed to be declared, on or after 1st October 2014.

Section 2 Removal of the maximum dividend per share

The Community Interest Company Regulations 2005 are amended as follows.

Section 3 Removal of the maximum dividend per share

(1) Regulation 2 (interpretation) is amended as follows.

(2) Omit the definition of “applicable share dividend cap”.

(3) Omit the definition of “maximum dividend per share”.

(4) Omit the definition of “share dividend cap”.

(5) In the definition of “subsidiary”, after “section 1159 of the 2006 Act;” omit “and”.

(6) Omit the definition of “unused dividend capacity”.

Section 4 Removal of the maximum dividend per share

In regulation 17 (declaration of dividends), for paragraph (1)(c) substitute—

(c) if the declaration of the dividend does not cause the total amount of all the dividends declared on shares in the relevant company for the financial year for which it is declared to exceed the maximum aggregate dividend for that financial year.

Section 5 Removal of the maximum dividend per share

Regulation 18 (maximum dividend per share) is revoked.

Section 6 Removal of the maximum dividend per share

Regulation 20 (carrying forward of unused dividend capacity) is revoked.

Section 7 Removal of the maximum dividend per share

(1) Regulation 22 (initial level and subsequent variation of dividend caps and interest cap) is amended as follows.

(2) In the heading, for “dividend caps” substitute “dividend cap”.

(3) Omit sub-paragraph (1)(a).

(4) In paragraph (3), omit “share dividend cap,”.

(5) In paragraph (4)(b), for “(5) to” substitute “(6) and”.

(6) Omit paragraph (5).

Section 8 Removal of the maximum dividend per share

For regulation 27 (information about dividends), substitute—

Information about dividends

(27)

(1) This regulation applies to the community interest company report of any community interest company which has declared, or whose directors propose to declare, a dividend for the financial year to which the report relates.

(2) The report must state the amount of any dividend declared, or proposed to be declared, by the company on each of its shares for the financial year to which the report relates.

(3) The report must also explain how the declaration or proposed declaration of any dividend declared, or proposed to be declared, by the company in respect of the financial year to which the report relates complies, or will comply, with regulations 17 and 19.

(4) The explanation provided under paragraph (3) must include details of—

(a) in the case of an exempt dividend, why it is an exempt dividend; and

(b) in the case of any other dividend, the maximum aggregate dividend

and how each of these has been determined.