Monday, September 18, 2006

P-CED Ltd - Set to avoid accountability, disclosure and legislative requirements that normally apply to charities

We found this post on one of the various bulletin boards.
It outlines in part the reason behind Mr Mowatt determination to establish a company as opposed to registration of a charity or association.  In registering P-CED My Mowatt aims to avoid the requirements and regulation that would otherwise applied to charitable organisation. There is no public membership,. no shareholders an no accountability.  Problem is if Mr Mowatt's company operates and portrays itself as a non-profit charitable organisation then they most certainly will be under scrutiny by the UK corporate and consumer affairs department.  Mr Mowatt and Mr continue to play off the fact that the operations of P-CED (UA) and P-CED (UK) fall under different international jurisdiction as such they hope to avoid any accountability by claiming that part of their operation comes under one or the other jurisdiction.  Mr Hallman has proposed that Bank accounts for the Ukrainian operations are to be held in Off shore accounts.
Jeff.Mowatt - Aug 20, 2005 11:14 am (# Total: 50)
Guarantee company

As you're talking within a UK context, I think, may I raise a question here?

Incorporating P-CED last year, which had formerly been the domain of a sole entrepreneur we faced a dilemma. As an organisation aimed at relieving poverty, we might have registered as a charity allowing us to collect donations but that wasn't where we were going and as I understood it, this would also place restrictions on how we might trade and most certainly involve a lot more administration.

We began leaning toward the bona fide co-operative structure but this too had it's disadvantages. We'd be facing a host of formal procedures but most of all, an organisation directed toward the benefit of its members would need to recruit the ecnomically disadvantaged before it could help them.

In the end, what seemed an appropriate model was the company limited by guarantee allowing us to trade freely and having no shareholders we could operate as we intened in the knowledge that no part of the directorship could "sell out" our original aims.

Perhaps there could have been a better way, I'm not really sure.

Something I wanted to mention however is that now taking an interest in the world of B2B technology, I was curious enough to search for the word nonprofit on one of the major portals and find only 25 results out of many thousands of companies. Social Enterprise didn't appear at all.

Could this mean we're under-represented in the business world, not using the technology or just that we're not mentioning it.

Shouldn't nonprofits find ways of dealing with others who are like-minded, I wondered?


Jeff Mowatt P-CED