Pars United Q&A – Governance
Why is Pars United a Community Interest Company?
Pars United is the corporate vehicle which was used to purchase 93.6% of the shares in Dunfemline Athletic Football Club. This company has been set up as a ‘Community Interest Company’ (CIC), a relatively new type of company structure established by the Government in 2005. A CIC adds an ethical dimension to corporate law.
A CIC is similar to a normal company and will therefore be run by a Board of Directors who will employ people, borrow money, and trade as would be expected of any company.
A CIC is subject to normal company law, but it must additionally act for the good of the community, and has other restrictions that prevent its profits and assets being diverted away from its supporters and the community.
More information about CIC can be obtained at: http://www.cicregulator.gov.uk/.
The advantages of a CIC over a normal company are that:
· It has an ‘asset lock’ that prevents the assets of the company being stripped from the company.
· The dividends and Directors’ salaries are restricted (in DAFC’s case there will be none)
· The company must work for the good of the community.
Because of these restrictions, a CIC perfectly fits our ideal of a widely owned community football club with its roots and aspirations firmly bedded, in our case, in the community of West Fife.
Why have you appointed an “interim” Board?
We had a major challenge to save Dunfermline Athletic from extinction under a mountain of debt in a very short timeframe. More than that, we have to reconnect the football club to its supporters and articulate a vision for the future which will take us forward to success. In order to do this, we need leadership and also an engagement with the supporters.
The interim board is designed to take us through season 2013-14, stabilise the club’s financial position, deal with a myriad of pressing short-term measures to ensure continued survival, and the ability of the Club to thrive in future.