The subject of legal structures is one that many people find rather intimidating, but it is an essential element in creating and sustaining a successful organisation. When seeking to identify the most appropriate legal structure for an organisation, we are essentially trying to answer two questions:

What are the key characteristics this organisation wishes to have? E.g:
•  Core purpose and values
•  Ownership (membership)
•  Accountability and internal democracy
•  Decision-making
•  Restrictions on use of income and assets

What is the most appropriate form of legal status for this organisation? Most in our sector will choose between:
•  Company limited by guarantee
•  Community Interest Company (limited by shares or by guarantee)
•  Charitable company
•  Industrial & Provident Society (community benefit society or co-operative)
•  Unincorporated association
•  Simple trust

Each has its advantages and disadvantages, and one option is likely to be the most suitable for each individual organisation. Each type of legal status will require the organisation to adopt certain provisions within its structure and operation.

Once we have identified the answers to the above two questions, my job is to put all these various characteristics and provisions together into a single document that will lay down the basic rules for the organisation - the constitution, or governing document.

CHOOSING A LEGAL STRUCTURE
The process of selecting the most appropriate legal structure will vary to some extent, depending on the nature and size of the organisation and where it is starting from. I have a range of tools and techniques to help with this process, so please do not hesitate to get in touch - whether you know just what you want or remain completely baffled by the subject!