Secondary Legislation to enable charitable companies and Community Interest Companies to convert into CIOs has been laid in Parliament and, subject to Parliamentary approval, it could be possible to convert a charitable company or CIC into a CIO in the early part of next year. 

The draft regulations laid before Parliament are intended to make the process of converting a straightforward one. However, as with all legislation the devil will be in the detail.

We will more closely examine the draft regulations shortly and a more substantial blog or article will be circulated by us. 

I would however urge charities to fully consider the implications of converting before pressing ahead. In my opinion, the "burden of dual regulation" - where charitable companies are subject to both company and charity law - has been overstated on occasions and whilst CIOs can be an ideal structure in some circumstances, there are other circumstances where a more traditional company structure is preferable. 

Charitable companies should not necessarily rush to convert at the earliest opportunity.