Formation Of MCFC Supporters Trust To Be Fast-Tracked
After the unanimous vote in favour of forming the MCFC Supporters Trust we have spoken and met with various professionals, advisors and supporters. Following this we have decided to push forward with the trust's formation as soon as possible. We have already started the process and hope to have it formed and registered with the Financial Services Authority within six weeks. We will, of course, keep you up to date with all progress on here.
The MCFC Supporters Trust will be an IPS (an Industrial and Provident Society). The definition of an IPS by the Financial Services Authority ("FSA") is an organisation conducting an industry, business or trade, either as a co-operative or for the benefit of the community, and is registered under the Industrial and Provident Societies Act 1965.
When an IPS is formed it must be registered with the FSA and dependent on the size of the turnover of the Trust it will have to be audited by an independent auditor each year.
Supporters Direct will oversee the trust's registration with the FSA and will also cover the costs of the registration. The vast majority of existing Supporters Trusts have opted for this form of structure because of its community orientation, democratic ethos and robust regulatory framework.
The attributes of an IPS are:-
1) Community Orientation - intrinsically part of the framework of the Trust
2) External Regulation - the FSA will not register rule changes that conflict with the requirement to operate for the benefit of the community
3) Robust Constitution - crucial rules such as the Objects, Powers and Application of Profits, may only be altered if there is a 75% majority in favour
4) Effective And Versatile - experience has shown IPSs to be adaptable and powerful in varied circumstances
5) Not For Profit Motive - safeguards against "carpet bagging"
6) Growing Supporters Trusts Movements - offers additional "political" weight and influence in the wider world of football
7) Community Of Mutuals - offers opportunities for additional funding and partnerships with other co-operatives. Provides affinity with other organisations committed to benefiting the local community; and offers reassurance to the supporters and the club of the community orientation and not-for-profit objectives of the Trust
8) Start-Up Grant Funding - as already mentioned Supporters Direct pay for legal costs and expenses subject to eligibility
9) Limited Liability For Members - no need to put your financial security on the line; members are protected
10) Financially Responsible - effective in circumstances where significant sums of money have to be raised by public offer
Please continue to send us your queries, feedback and input to email@example.com and keep up to date with all progress by reading this blog.