Currently charitable companies are required to register both as charities and as companies. As a result they have dual regulation by both Companies House and the CC.
The Act makes it possible to create a new vehicle for these charities - the Charitable Incorporated Organisation (CIO). A CIO will have the advantages of a corporate structure, such as membership and reduced personal liability for trustees, without the burden of dual regulation.
This part of the Act will become effective in 2008.