Community asset transfers: the legal issues

Community Asset Transfers – the legal issuesStephen Marshall, Consultant

Bethan Walsh, Solicitor

Outline• Structuring the community group to minimise

risk for trustees

• Effective legal due diligence

• Funding arrangements

• Case study

Structuring the community group• Types of legal structure:

– Unincorporated

– Incorporated • Limited company

• Community Interest Company

• Charitable Incorporated Organisation

Types of legal structure• Unincorporated association

• Incorporated:– Company limited by guarantee

– Community Interest Company (CIC)

– Charitable Incorporated Organisation (CIO)

– Co-operative or Community Benefit Society

Effective legal due diligence• Investigating and fact finding

• Is the information you have received sufficient?

• Does it raise further queries?

• Legal due diligence is an ongoing exercise

Funding arrangements• Big Lottery Fund

• Charity Bank

• Grant Finder

• Unity Trust Bank and WCVA’s Community Investment Fund

Case Study Threeways Centre – North Halifax

Case Study – Site Map

Case Study – Threeways Centre

• A community hub on the site of a disused school

• Not-for-profit organisation mainly run by local volunteers

• Facilities include a doctors surgery, sports centre, conferencing suites

Case Study – Negotiation

• Worked on the project for over 5 years

• Proposal by Threeways was met by stiff competition from other organisations and scepticism from local authority

• Helped negotiate, devise and fine-tune the agreement by which control of the premises switched to Threeways

Case Study – Creation of Corporate Identity

• Identified the most appropriate form of corporate structure

• Helped set up and register the charity

• Secured initial project funding

Case Study – Property Aspects

• Running of the site passed to Threeways on a long term lease by Calderdale council

• Planning, environment and construction aspects taken into account

Thank You

Contact details

Bethan WalshDD : 0292 039 1832M: 07876 872 206E: [email protected]

Stephen MarshallDD : 01332 25 41053E: [email protected]