At the Shetland Organic Producers' Group AGM last year, the membership gave the committee a mandate to initiate the formation of a trading arm in order to develop a commercial website and market Shetland Organic produce.
Investigation lead to the conclusion that a Community Interest Company (CIC) would be the best option for the Group. Community Interest Companies are a new type of limited company under the Companies Act 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.
ShetlandOrganics cic, incorporated in November 2008, is a company limited by guarantee, and has an "asset lock" that ensures that the assets and profits are retained within the the CIC for community purposes. A CIC cannot support political activities. The beneficiaries shall be the Organic producers (farmers, crofters and growers) and processors throughout the Shetland Islands through being Members of the Company.
Initially, the Company will concentrate on the production of woollen goods under the 'WoolMatters' Native Shetland Organic Wool project, giving full certification and traceability from producer to finished garment.
Financial assistance for the setting up of ShetlandOrganics cic has been given by Shetland Islands Council and the EU LEADER programme.
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