7.3 Dissolving a SCIO
As with charities with other legal structures, prior to taking the decision to dissolve your Scottish Charitable Incorporated Organisation (SCIO) and applying to the Office of the Scottish Charity Regulator (OSCR) for consent, you need to first ensure that you have the power to do so. This will be detailed in your SCIO’s constitution similar to below.
Unlike other charities however, there is no requirement for SCIOs to make an application to dissolve within a given timescale of the proposed dissolution date. Depending on whether the SCIO is solvent or insolvent (debts of at least £1,500), the information required in an application to dissolve varies slightly as illustrated in the table below
When OSCR receives the above documents it will publish the Notice of Application for Dissolution on its website within 14 days. It will remain on OSCR’s website for 28 days, during which time any person may contact OSCR to object. Once the 28 day publication period has expired, OSCR must make its decision within 21 days. If consent is granted, the SCIO will be free to dissolve within an agreed period of time. Once it has done so, it must notify OSCR by providing various forms of information including evidence that any surplus assets have been transferred.
For insolvent SCIOs, within 14 days of publishing the Notice of Application for Dissolution on its website OSCR will pass the application to Aib to decide whether the SCIO shall be sequestrated (please note that currently a fee of £200 must be paid to AiB within 21 days of receiving the application from OSCR). The AiB, if satisfied, will then award sequestration of the SCIOs estate and notify both OSCR and the SCIO of its decision. Depending on the number of assets, the sequestration process will take a minimum of 15 months. For further information on dissolving a SCIO, please refer to OSCR’s SCIOs: A Guide document.
1.0 Getting Started
2.0 Developing and Growing
3.0 Taking on an Asset
4.0 What is Social Enterprise?
7.0 Dissolving an Organisation
7.1 Dissolving a Non Charity Unincorporated Association
7.2 Dissolving a Charity
7.3 Dissolving a SCIO
7.4 Dissolving a Community Interest Company
7.5 Dissolving a Limited Company