From 01 October 2014 the dividend and performance related interest caps are changing and will affect all CICs.
This means that Community Interest Companies will no longer be subject to the maximum dividend per share cap which restricted dividend payments to 20% of the paid up value of a share. This cap was seen as complex and restrictive and prevented shareholders from sharing in the success of the CIC, it also discouraged investors from investing in CICs. The maximum aggregate cap is retained at 35%. Further information about the changes to the dividend cap can be found in 6.3 of our guidance chapters.
The Regulator also took the opportunity to increase the performance related interest from 10% to 20%. Further information about the changes to the performance related interest cap can be found in 6.4 of our guidance chapters.