Sovereign Harbour (Sea Defences) Community Interest Company Ltd

Sovereign Harbour (Sea Defences) Community Interest Company Ltd is a wholly owned subsidiary of the Trust, formed to conduct the rent charge collections and applications of resulting funds. The Trust is no longer entitled to any payments under the rent charge deeds but exists to hold the shares in the CIC.

A Community Interest Company is regulated by the Community Interest Companies regulator, a role established by The Companies (Audit, Investigations and Community Enterprise) Act 2004. The website of the Regulator explains that:

"Community interest companies (CIC) are a type of limited company designed specifically for those wishing to operate for the benefit of the community rather than for the benefit of the owners of the company. This means that a CIC cannot be formed or used solely for the personal gain of a particular person, or group of people".

It was for this reason that the board of the Trust chose to establish its operating subsidiary using this type of company.

With effect from January 2012 the Company has been responsible for collection and application of rent charge payments at Sovereign Harbour.

The CIC has three main activities:

  1. Administration relating to collections and expenditures including enforcement action as necessary
  2. Accounting to the Environment Agency according to the formula in the EA agreement
  3. Accounting to Premier Marinas for the balance of the SW charge and any money received in respect of the Marina charge.

The CIC is accountable to the Environment Agency and Premier Marinas, not homeowners whose only right is to have the expenditure applied according to the covenant in the rent charge deed.

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