Community Interest Companies: Pay

Business, Enterprise and Regulatory Reform written question – answered on 30th April 2008.

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Photo of Christopher Huhne Christopher Huhne Shadow Secretary of State for Home Affairs, Home Affairs, Shadow Secretary of State for Justice & Lord Chancellor, Ministry of Justice

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.

Photo of Gareth Thomas Gareth Thomas Parliamentary Under-Secretary(Department for International Development) (Trade Policy) (also Business, Enterprise and Regulatory Reform), Parliamentary Under-Secretary (Department for Business, Enterprise and Regulatory Reform) (Trade and Consumer Affairs) (also Department for International Development), Party Chair, Co-operative Party

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.

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