What is a SCIC? (Société Coopérative d'Intérêt Collectif)
= A Cooperative Community Interest Company
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A general presentation of this legal structure which allows all the interested parties (employees, beneficiaries, volunteers, partners and other organisations including public bodies) to come together with the same aims.
An audio presentation of the main characteristics of a SCIC.
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Why choose this cooperative structure for the future of
Le Fosso?
- Thanks to its thirty years of activity, the business has developed within a rich context of partnerships. This type of cooperative necessitates a multi-partner approach (multi-stakeholders) with individuals, associations, businesses and local governmental organisations involved. Partners and volunteers can become shareholding members of the business both in financial and decision-making terms. This encourages networking and leads to new energies and new projects for all of the participants.
- Promoting and defending democracy is at the heart of a cooperative business. In a SCIC, one person or organisation has one vote at Annual General Meetings etc., no matter how many shares that person or organisation retains. The governing structure of a SCIC should permit each commission of activity and college of associates autonomy and responsibility over decision-making while being answerable to the overall structure.
- Bringing various people and projects together around a common vision. This creates a diversity of actions within a harmonious whole. A SCIC must be both economically viable and have a social dimension.
- Allowing the employees to have an influence over their jobs and creating long-lasting employment beyond the handover/transition period.
- With roots in the fabric of the local economy the cooperative will be able to reinforce and develop its ties by welcoming local inhabitants and agencies into the cooperative; through the purchase of shares, through the use of the premises and by accessing its different activities.
- Le Fosso has always had an international dimension. Over the years many service-users, helpers and volunteers have brought their enthusiasm to the project. Creating the SCIC allows people and organisations outside France to participate in the project, linked by shared interests and values - a village without borders. By developing links far and wide we can all learn from experiences outside the local sphere.
FAQs
What is a SCIC ?
The legal entity of SCIC was created by the French law "2001-624 of 17 July 2001". A SCIC is a cooperative business constituted in the form of either a SARL (a limited liability company), an SAS (a simplified joint-stock company) or an SA (private limited company) with variable capital which must have as its objective “the production or the provision of goods and services of community / collective interest and social benefit”.
A SCIC must have at least three types ("categories") of members (also called associates or shareholders or stakeholders).
What is “Share capital”?
The total of shares bought by its members constitutes the capital of the cooperative. It permits the existence of the business and guarantees its viability. The capital is variable: its increase (by selling new shares) offers the possibility of improving services, developing new services, investing and creating employment.
Who can acquire shares?
Any individual or organisation wishing to participate in the aims of the SCIC. The cooperative must be both economically viable and have a social utility. To be an associate means supporting the development of the project for the collective interest. It is not necessary to live in France in order to become a shareholder.
It also means being able to participate in the governing structure, its direction, its orientation and its activities following the principle of 1 person = 1 vote.
Is it a safe investment?
The objective, naturally, is to create from day one, a stable and sustainable structure; money invested in shares will also ensure that the ambitions of the cooperative can be continued into the future. Purchasing shares in the cooperative is, above all, a meaningful and positive act, it does, however, involve a financial risk. The risk is limited to the amount invested by each individual or organisation; that is to say, the value of shares purchased. The purchase of shares is NOT like paying a subscription to an association or a charity. A shareholder remains a member for as long as the cooperative continues to exist or until the shareholder, after requesting to be reimbursed, receives their investment back.
Is there a financial advantage in the purchasing of shares?
In the case of a profit-making year, the Annual General Meeting can decide to award a remuneration of shares (a dividend), within a legal limit, after the deduction of grants and legal reserves. The SCIC legislation encourages profits to be reinjected into the project.
The legal entity of SCIC was created by the French law "2001-624 of 17 July 2001". A SCIC is a cooperative business constituted in the form of either a SARL (a limited liability company), an SAS (a simplified joint-stock company) or an SA (private limited company) with variable capital which must have as its objective “the production or the provision of goods and services of community / collective interest and social benefit”.
A SCIC must have at least three types ("categories") of members (also called associates or shareholders or stakeholders).
What is “Share capital”?
The total of shares bought by its members constitutes the capital of the cooperative. It permits the existence of the business and guarantees its viability. The capital is variable: its increase (by selling new shares) offers the possibility of improving services, developing new services, investing and creating employment.
Who can acquire shares?
Any individual or organisation wishing to participate in the aims of the SCIC. The cooperative must be both economically viable and have a social utility. To be an associate means supporting the development of the project for the collective interest. It is not necessary to live in France in order to become a shareholder.
It also means being able to participate in the governing structure, its direction, its orientation and its activities following the principle of 1 person = 1 vote.
Is it a safe investment?
The objective, naturally, is to create from day one, a stable and sustainable structure; money invested in shares will also ensure that the ambitions of the cooperative can be continued into the future. Purchasing shares in the cooperative is, above all, a meaningful and positive act, it does, however, involve a financial risk. The risk is limited to the amount invested by each individual or organisation; that is to say, the value of shares purchased. The purchase of shares is NOT like paying a subscription to an association or a charity. A shareholder remains a member for as long as the cooperative continues to exist or until the shareholder, after requesting to be reimbursed, receives their investment back.
Is there a financial advantage in the purchasing of shares?
In the case of a profit-making year, the Annual General Meeting can decide to award a remuneration of shares (a dividend), within a legal limit, after the deduction of grants and legal reserves. The SCIC legislation encourages profits to be reinjected into the project.