Why is Mydex CIC a Community Interest Company?

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Why is Mydex CIC a Community Interest Company? How is this different from any other commercial organisation and what does this mean for Mydex CIC as a Social Enterprise?

Thu, 20/11/2014 - 12:04

Anonymous (not verified)

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Technical Answer

As a CIC, Mydex is subject to an ‘asset lock’, i.e. none of its assets can be sold or transferred to another organisation unless that organisation is also committed to Mydex’s specific social purpose. It cannot, for example, sell itself to another company which then decides to use its assets for a different purpose.

 

Mydex can pay dividends to shareholders but these are subject to a cap. Currently, a maximum of 35% of profits can be distributed to shareholders. The remaining 65% must be reinvested in Mydex's social purpose.

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Thu, 20/11/2014 - 12:04

MydexCIC

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Short Answer

Mydex CIC was established as a Community Interest Company (CIC) for a very simple reason: trust. CICs are legally required to conduct their business for the benefit of the community they serve, and cannot be bought out by a company that goes against its social purpose. In the case of Mydex, our legally enforceable social purpose is "to help individuals realise the value of their personal data".

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Thu, 20/11/2014 - 12:04

MydexCIC

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