To ask the Secretary of State for Business, Enterprise and Regulatory Reform what scrutiny is undertaken of the rates of pay for senior executives of community interest companies to monitor whether such pay is appropriate for the tasks undertaken; and if he will make a statement.
Every community interest company (CIC) is obliged by section 26 of the Community Interest Company Regulations 2005 (SI 2005/1788) to disclose certain details about its directors' remuneration as part of its annual community interest company report. The decision as to how much an individual director is paid is a matter for each CIC but the functioning of CICs is overseen by the CIC regulator to whom a copy of the community interest company report is sent.
Any person can report their concerns to the CIC regulator if they consider that the CIC's actions appear to be inconsistent with its aim to benefit the community. This includes concerns about remuneration. The regulator has supervisory powers under the Companies (Audit, Investigations and Community Enterprise) Act 2004 to maintain confidence in community interest companies. This includes the power, where appropriate, to investigate the affairs of a community interest company.