How Many Directors Does a CIC Need?

Have you ever found yourself wondering, “How many directors does a CIC need?” If so, read here for an answer to that question and more information about CIC Directors.

female executive thinking

Are you considering opening a CIC? If you’re considering it, let this article be the sign for you to take action.

CICs are a great vehicle to accomplish a lot of good in our local communities. But, CICs are just like any other company. In order to be as effective as possible, they need to have the proper structure and play by the rules.

One of the important questions you should be asking is “How many directors does a CIC need?” Having the right amount of directors on your board is very important. It could mean the difference between remaining a CIC or adopting another corporate structure like a charity.


We’re not saying charities are bad, but being a CIC affords you certain benefits. If you’re expecting those benefits for your community organisation, you wouldn’t want to lose them over a small oversight in the management structure.

Fortunately, we’re here to help. Read on and we’ll tell you everything you need to know about CIC formation and structure.

How Many Directors Does a CIC Need?

directors have annual meeting

If your CIC is limited by shares, You must have at least one director and shareholder. There is no Limit on the maximum you can have.

A CIC that is limited by guarantee should have at least one directors or Subscriber . Depending on the bank or funding body you’re working with, they may require three.

What Does A Director Do?

director chair

If you’re going to manage the number of directors within your organisation, it makes sense to understand what a director’s role is. The last thing you want is someone with another title doing job duties that “muddy the waters”.

The term director applies to anyone who performs director duties. This is true whether they’re formally appointed a director or not.

Their main responsibility is making sure your CIC abides by any laws and other regulations. It’s an important position of trust, and directors are sometimes personally responsible for a CIC’s inability to follow the rules. If they make a mistake, it can result in their removal from the organisation or a disqualification hearing.

anxious man

Directors are also responsible for making sure the CIC continues to operate in accordance with the annual community interest test. This test helps to make sure the organisation is still doing good out in the local community.


The main concern of Companies House is that your organisation is putting more concern on doing good in the community than making financial returns for investors in the company.

It’s important not to take the role of director lightly. It’s often recommended to have “non-executive” directors that don’t work for your CIC full-time. They can use their prior experience to help manage the company and offer a unique perspective.

Directors Done Right

target board

We hope we gave you an answer to the question “How many directors does a CIC need?” It’s an important question to ask when structuring your CIC.

CICs begin with the best of intentions. They’re started by great people who want to see their local community change for the better.

The best way to do that is to get your CIC started on the right foot. This way, you and your team can focus on what’s really important.

For more information about how to structure your CIC, contact our team at KG Accountants. We’re always here to help and look forward to seeing your CIC thrive.

Arrange a FREE initial consultation.

0207 953 8913

How we can help

Call us today on 0207 953 8913 or complete our enquiry form in order to book a FREE initial consultation.

Categories: CIC Directors, cic formation, Community Interest Companies

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