25 New Income Generation or Trading Activity
Apart from core teaching, research and the organisation of conferences, when a new income-generating or trading activity is set up (whether in the UK or abroad), the Head of Department must consult the Taxation Section beforehand to consider the VAT implications and whether the activity constitutes trading which might be subject to Corporation Tax.
The Director of Finance may direct that transactions be undertaken through a University subsidiary company.
26 University Companies
No University company may be formed or shares taken in any company (whether in the UK or abroad) for any purpose without advice from the Director of Finance and the prior approval of the Finance Committee, except when done through the Investment Office for investment purposes or by Cambridge Enterprise in relation to the exploitation of intellectual property. Advice must be obtained from the Director of Finance, except when done through the Investment Office for investment purposes or by Cambridge Enterprise in relation to the exploitation of intellectual property.
University subsidiary companies shall enter into and keep under review a memorandum of understanding with the University. Each company shall operate in accordance with such memorandum and within the framework provided by these Regulations, including the provisions regarding procurement, and any additional procedural requirements imposed by their boards.
Heads of Department and EM shall maintain departmental and corporate registers of Embedded Companies.
Heads of Department shall in respect of Embedded Companies:
- undertake financial and space cost benefit analysis for all new and (periodically for) existing Embedded Companies;
- comply with Regulation 29;
- take into account University policies (including the University's Guidelines for Establishing and Working with Embedded Companies);
- ensure that Embedded Companies comply with health and safety requirements; and
- put in place appropriate contractual arrangements to govern the relationship between the University and the company;
- obtain evidence of Public Liability and employer's insurance annually; and
- identify, and deal appropriately with, conflicts of interest.
28 Consultancy and Private Activity
When engaging in consultancy or other commercial activity in a private capacity, Staff must not hold themselves out as acting on behalf of the University, use University headed stationery nor (except in accordance with Regulation 29) use any University premises facilities or resources.
The University accepts no responsibility for any work done, advice given or activity undertaken by Staff in a private capacity. Staff are reminded of the need to take out professional indemnity insurance for such work, advice and activity and that they are responsible for all liabilities arising including as to tax. Staff who conduct work through Cambridge University Technical Services Limited are insured under the University's insurance policies.
Unless the Head of Department gives prior written consent and an appropriate contractual agreement with the University is put in place, non-University activities may not be carried out on University premises nor University facilities or resources used for such activities. Care is needed to avoid breaching any obligation of the University to a third party (for example in relation to use of computing facilities and software).
Heads of Department shall ensure that appropriate charges are made for the use of University premises, facilities or resources for non-University purposes (see Regulation 12).
The Director of EM must be consulted before making any arrangement (including leases or licences) for the use of any University space for non-University purposes. See also Regulation 27.
30 Intellectual Property
Intellectual property generated through University activities is governed by the Intellectual Property Ordinance graced on 12 December 2005.