Jump to content
Home
Forum
Join Us
Articles
About Us
Tapestry

Becoming incorporated


Thumper
 Share

Recommended Posts

We are now an incorporated preschool but with charitable status. Basically committee then became trustees, directors. Quite a lot of paper work, strict rules with Companies house, but apart from that fine. If you are members of the PSLA you can access advice through the whole process. Only thing I would have done differently as we did muddle through the process is possibly paid for a solicitor to do some of it.

Why do you want to become one what are you now.

Good luck, do pm me if you need any advice.:)

Link to comment
Share on other sites

What is the difference between having a committee and/or having trustees/director? Can your staff be trustees/directors and if you are incorporated who then has overall responsibility? Sorry lots of questions as this is something we have been considering for many years. Just thinking though that if we have a problem finding committee members then we would surely have just as much if not more trouble finding directors?

  • Like 2
Link to comment
Share on other sites

We are now an incorporated preschool but with charitable status. Basically committee then became trustees, directors. Quite a lot of paper work, strict rules with Companies house, but apart from that fine. If you are members of the PSLA you can access advice through the whole process. Only thing I would have done differently as we did muddle through the process is possibly paid for a solicitor to do some of it.

Why do you want to become one what are you now.

Good luck, do pm me if you need any advice.:)

We also did the same last year...we got our accountants to do it all which really didn't cost us much and was SO simple because he just asked us for info when he needed it!.

Link to comment
Share on other sites

 

We also did the same last year...we got our accountants to do it all which really didn't cost us much and was SO simple because he just asked us for info when he needed it!.

 

Hello

 

Can I ask - did you stay with/are you with the PSLA?

 

I'm considering if incorporated or CIO is the best route.....any advice?

Link to comment
Share on other sites

yes we are psla registered. We didn't do the CIO route because the rules were due to be changed when we moved and it was still a new and unproven way of doing things which our accountant warned us about. The reason for us changing was that we were taking on a large lease for the new building and the liablility issues were too high to expect any individual to take on board. Our trustees now have a limited by guarantee liablity of £5!

We can have anyone who is legal! on the board of trustees and they act in the same way as governors in schools really. At the moment most are parents or ex parents (and we ask them to sit for at least 2 years...but they can stay longer...in fact as long as they like) we would really like to develop this to include people from the communitywho have specialist knowledge (so finance/maintenence/education etc) we have just had a local councillor express an interest , which might prove useful!

 

I have to say that over the last few years my deputy and myself have taken on many of the tasks of the committee and so have been the business managers anyway which made the transfer easier

  • Like 1
Link to comment
Share on other sites

yes we are psla registered. We didn't do the CIO route because the rules were due to be changed when we moved and it was still a new and unproven way of doing things which our accountant warned us about. The reason for us changing was that we were taking on a large lease for the new building and the liablility issues were too high to expect any individual to take on board. Our trustees now have a limited by guarantee liablity of £5!

We can have anyone who is legal! on the board of trustees and they act in the same way as governors in schools really. At the moment most are parents or ex parents (and we ask them to sit for at least 2 years...but they can stay longer...in fact as long as they like) we would really like to develop this to include people from the communitywho have specialist knowledge (so finance/maintenence/education etc) we have just had a local councillor express an interest , which might prove useful!

 

I have to say that over the last few years my deputy and myself have taken on many of the tasks of the committee and so have been the business managers anyway which made the transfer easier

 

 

We have also take on many of the committee duties as parents come and go there seems to be little consistency for the Pre school.

 

I am hoping to get trustees who have a particular strength like an accountant for treasurer, and hope they stay FOREVER. ;)

 

Did it cost much to do this?

 

The liability part is fantastic :)

 

How many members do you have now? Do they mainly fundraise?

 

Sorry lots of questions, but trying to ensure I know all the facts!

 

Thanks

Link to comment
Share on other sites

I'm interested in changing playgroups set up to anything that might help. How does incorporated help?

 

Hi Rea

 

For me one on the main factors is the liability, the committee are no longer liable if things go wrong, they just pay a set fee.

 

I'm wanting to change as there seems to be little to no consistency with committee members coming and going. The parents who offer to join the committee are fantastic, we have 12 plus 3 co-opted on, however the skill set is not always people with any knowledge of finances, education, HR etc. I'm hoping by coming incorporated I can approach select people who have the skills and time required and keep them for much longer than the usual 2 years.

 

Not 100% hence all the questions - but I think it has to be a better way forward!

 

 

Link to comment
Share on other sites

It sounds just what I want. I'm chair, my children are in their twenties, I don't work and have time to spare but I know our parents aren't has lucky and I can't count on their time.If I can get them together I'll put it to them :)

Link to comment
Share on other sites

We have also take on many of the committee duties as parents come and go there seems to be little consistency for the Pre school.

 

I am hoping to get trustees who have a particular strength like an accountant for treasurer, and hope they stay FOREVER. ;)

 

Did it cost much to do this?

 

The liability part is fantastic :)

 

How many members do you have now? Do they mainly fundraise?

 

Sorry lots of questions, but trying to ensure I know all the facts!

 

Thanks

 

Think we paid around the £400 mark for the accountant to do...you could do it for less but i had enough to do at the time so paid someone else to get on with it! we currently have 7 trustees (or directors if you are speaking to ofsted!) They are there for the stragegic part of the business and to ensure our standards are kept up. Each has a responsibility and i have separate meetings with them if i need to (safeguarding/grant funding etc) They meet at least 3 times a year and do not do fundraising as such ...but the PTA chair sits on the trustees and one of them does grant applications ....which has been the best thing ever!!! Much easier to get £1000 from a grant than to hold an event to raise it...but the PTA is important as it upholds our ethos of community and including everyone in pre-school. The chair meets us for regular management meetings so that she knows the day to day stuff (she also does my appraisals and supervisions)

Link to comment
Share on other sites

I'm still rather confused as to how if I cannot get people to come forward for the committee how would I get the to come forward to be a director/trustee. It isn't the liability part that puts them off, most dont know or understand that bit. My Chair is a solicitor and has her own company- she doesn't have the time to do anything with us, barely has time to meet with me. Most of our communication is done via email. My treasurer is the same, has never yet managed to make a committee meeting, she does all our accounts and payroll and is a full time account. However neither of this people would be doing this if their children weren't with us.

 

I do virtually all the committee business, we have a meeting tomorrow and this is only because I have sorted it, it's our first one since last Oct and is only because I have said, according to our constitution we have to have one at least once a term. Chair cant make it and Treasurer hasn't replied. On the upside , if we want or need anything I just tell them and they agree!! But equally I am getting really, really fed up with it and I cant see things getting better next year. This has made me think about incorporation but so far everything I have seen has made me think it wont be any easier, if I have to approach people to ask them to be directors/trustees what is the difference? Can staff be directors?

  • Like 1
Link to comment
Share on other sites

Because our trustees have to agree to doing at least a 2 year term they know they have to commit to attending 3 meetings a year. (they are all planned months in advance!) Our trustees at present are mainly'left over' committee...we will hope to change this over the next 2 year period but it is still early days and this system is still being tested. I am starting to approach people like councillors/mayor (local!! ) business people in the area etc ....your solicitor sounds great have you asked her what she could commit to?

  • Like 1
Link to comment
Share on other sites

Do you mean my soliciter finlaysmaid? If so yes in theory she does sound like the ideal person however. This is her third year as our Chair and quite frankly as lovely as she is, as a Chairperson she has been useless this past year. Has managed no meetings since our AGM (tomorrows will only be our second) and even her emails to me can take around 2/3 emails from me to get an answer form her. She is just too busy. She has a demanding job, which is her own company as well two small children and quite frankly if she is too busy too be a member of our committee then she is going to be too busy to be a director! Which is kinda my point really, if they dont want to be committee why would they want to be directors?

Another question, sorry loads of them. If you are going to approach people like local councillors/mayor etc and I suppose that the sort of person that would possibly agree to this would be the same sort of person that possibly would be a school governor? But from your point of view- are you not then 'governed' by people that possibly not only know nothing about EY's but dont even have anything to do with children? I know the same could be said for a lot of our committee members but we do at least have their childs well being in common?

Link to comment
Share on other sites

Yes i did mean your solicitor ...but having read your post maybe not :blink: Yes you are right we would be governed by people that potentiallyhave nothing to do with EY(though i would hope they have some connection to us!) ...except i would hope to have education people on the 'team'. (We also have a pta who are parents) for us this is about the business side of pre-school. We have an expensive building which needs maintaining, we have to be taking in more money than our breakeven point to stay open, we need guidance on business matters not on EY's...we are the expert in that and know how to find help if we need it. You could argue that the child's well being is being cared for by ensuring the standards are kept at the top level.

Governors of schools, of course are also in this position and may not have children at the school either.

Having committees is not working for most of us..we have to consider how to change things for the better. I could not continue to ask parents to do jobs that were taking them hours for no pay. I now have an administrator she does all the pay role, lists registers etc and most of the letters. I am definitely the hed of the business both in terms of EY and finance etc. It is me who guides the business into the future. I go to the trustees with my thoughts but the buck stops with them if i say x and they say y then i have to go with their decision or present a case to oppose them. Unless you run your own business then someone has to be in charge

Link to comment
Share on other sites

When incorporating you can have it written into the articles that the Manager sits on the board of Directors you can also remove clauses where by you have to have a certain number of parents etc. As manager if you find people that trust your ability to do the job then there is little else for them to do as trustees and liability is removed from them on a personal level. It also means as Managing Director you can be point of contact with OFSTED etc.

Link to comment
Share on other sites

I felt the same as you Lynned55 - if committee members are thin on the ground and those who were vaguely keen are not suitable, how will this improve with becoming a charity or community interest company? So I set up a limited company and am sole director and it's been so, so much better.

Link to comment
Share on other sites

We were a weird committee run setting but not a charity. The committee all agreed to hand it over as they did not want to continue. My accountant set up the company for £140 and the really difficult part was negotiating the lease which had never been formalised prior to this change of ownership. I kept the staff as required under TUPE rules and had to do a new registration with Ofsted and have a visit from an inspector before I could formally take over but this was very straightforward.

Link to comment
Share on other sites

Thats certainly worth looking into. I dont mind being director, for a while at least, but my main worry is that others will come along who dont have the history with playgroup and wont fight so hard when things look grim.

  • Like 2
Link to comment
Share on other sites

Thats certainly worth looking into. I dont mind being director, for a while at least, but my main worry is that others will come along who dont have the history with playgroup and wont fight so hard when things look grim.

And what happens when you are ready to give it all up, but nobody wants to fill your shoes?

I am at that situation for this coming September - with only a Chairperson willing to carry on for her last year but everyone else having left (I mean that loosely as only 4 com members anyway!) not sure who's going to do anything and currently I will only have 5 children on the books!

Link to comment
Share on other sites

For me now I am running my own business so when I retire (!) that's it finished (I am not allowed to sell the business under the draconian lease arrangements) although someone could negotiate a new lease with different terms maybe. My lease was for 15 years so it's fairly long term.

  • Like 1
Link to comment
Share on other sites

The problem for us would be transferring all the assets. I dont mind opening as a private company but I'm certainly not going to spend all my money buying the preschools stuff and then give the money to another charity! If they would let us (my dep & I ) just take it over that would be fine but unfortunately we wont be allowed to. We would have to close down and open up as a totally new business. I cant see it would be a problem getting my committee to agree to change but it's the charity thing that is causing the problem

  • Like 1
Link to comment
Share on other sites

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. (Privacy Policy)