Recent reforms to corporate legal structures for social enterprise in the UK: opportunity or confusion?

Abstract

Purpose To study the legal underpinnings of the definition of social enterprise in the context of the problems with the corporate legal structures available in the UK in the late twentieth century and the reforms of the early twenty first century to assess whether further reforms are needed to facilitate the growth of the social enterprise movement. Design/methodology/approach A definition of social enterprise is proposed and examined in light of the problems associated with twentieth century company law and the efforts to reform and develop it in the period, 2000‐2006. Findings Three major developments may be seen to have important consequences for the continuing reform and development of company law: the Industrial and Provident Societies Act 2002 (Office of Public Sector Information 2002a) (private members bill); the Co‐operatives and Community Benefit Societies Act 2003 (Office of Public Sector Information 2003) (private members bill); the PIU Report “Private Action, Public Benefit” (Cabinet Office/Strategy Unit 2002) and the resulting Companies (Audit, Investigations and Community Business) Act 2004 (Office of Public Sector Information 2004); and the Charities Act 2006 (Office of Public Sector Information 2006). Refers also to other developments impacting on company law, notably the European Co‐operative Society’s European Co‐operative Society Statute (SCE) Regulation and Directive. Originality/value Provides a useful guide to UK legal trends likely to impact on social enterprises.