259.This section provides that a CIC cannot lose its status as a CIC except by the methods described in the following sections.  This provision is effectively part of the ‘asset lock’, since it ensures that the members of a CIC cannot get round the restrictions to which CICs are subject, by ceasing to be a CIC and then distributing the company’s assets.  If a CIC is dissolved, it is intended that the residual assets will be preserved for the community benefit, under regulations to be made under section 31.  Conversion to a charitable company under  sections 54 and 55, or to an industrial and provident society  section 56, would impose other restrictions on the distribution of assets.
Commentary on Sections Change of status Section 53 - Ceasing to be a community interest company