service contract period 6 months.
CIC limited by guarentee.
I understand that the Trust can terminate the contract with 6 month notice as stated in the contract. They are requesting that the Director C who gave notice of resignation and made accusations about DirectorA would remain as Director keeping the CIC status but changing the name of the business. The Trust have requested that Director A resigns, may take the name but not the status and start up elsewhere with a small set up fee. Director A intends to remain as a director of the CIC and to continue employment. Do the Trust have any right to either request resignation or the CIC status or a change of directors?What options of response are there for Director A?
The Trust is not a member of the CIC, they are separate bodies with a service contract between them. With only 2 directors of th CIC, one wanting the other out, who makes the decision to remove a director?
The history is Director C wants to be sole director and is trying to get director A to leave. Director C has persauded the Trust, through accusation to lose faith in Director A. The Trust has given the notice unless Director A leaves. it seems they have no rights to make these proposals. What responses can A give, taken that A wishes stay in the business?
The two directors are the members, it is Community Interest Company with non profit limited by guarentee.
The CIC and the Trust are separate 'bodies', so the Trust does not have a say in how the CIC is structured. I think through the service contract the Trust can decide to lose faith in delivery of service and give notice. On termination of the contract the premises would be withdrawn and the CIC would either have to fold or find another contract or premises. If director C decided to carry out resignation from the CIC could they then take up a contract with the Trust again? What happens to the present employees?