The Charity Commission is consulting until 22 August 2016 on its proposed approach to using new powers to disqualify individuals from acting as trustees.
The Charities (Protection and Social Investment) Act 2016 gives the Commission a power to disqualify individuals from acting as trustees. Although the Act received royal assent on 16 March 2016, the new power will not come into force until a date to be appointed by statutory instrument.
While a person is disqualified under this power, they are also disqualified from holding senior management positions in the charity or charities concerned. The Commission will be able to disqualify, for a proportionate period, individuals who are judged unfit to be a trustee, with the aim of protecting a charity, other trustees and the public.
The legislation provides that the commission will only be able to make a disqualification order when it is satisfied that each of the following tests is met:
• the person is unfit to be a trustee
• the order is desirable in the public interest in order to protect public trust and confidence in charities
• at least one of the six specified conditions applies
The six conditions are:
• a person has been cautioned for an offence against a charity or in the administration of a charity for which a conviction would bring automatic disqualification
• a person has been convicted of an offence in another country against a charity or similar body that, if committed here, would bring automatic disqualification from acting as a trustee
• a person has been found by HMRC not to be a ‘fit and proper person’ to be a manager of a body or trust
• a trustee, officer, agent or employee of a charity was responsible for, contributed to or facilitated misconduct or mismanagement in a charity or the person knew of the misconduct or mismanagement and failed to take any reasonable step to oppose it
• an officer or employee of a corporate trustee was responsible for, contributed to or facilitated misconduct or mismanagement in a charity or the person knew of the misconduct or mismanagement and failed to take any reasonable step to oppose it
• other conduct, whether or not in relation to a charity that is, or is likely to be, damaging to public trust and confidence in a charity or charities
The Charity Commission is consulting until 22 August 2016 on its proposed approach to using new powers to disqualify individuals from acting as trustees.
The Charities (Protection and Social Investment) Act 2016 gives the Commission a power to disqualify individuals from acting as trustees. Although the Act received royal assent on 16 March 2016, the new power will not come into force until a date to be appointed by statutory instrument.
While a person is disqualified under this power, they are also disqualified from holding senior management positions in the charity or charities concerned. The Commission will be able to disqualify, for a proportionate period, individuals who are judged unfit to be a trustee, with the aim of protecting a charity, other trustees and the public.
The legislation provides that the commission will only be able to make a disqualification order when it is satisfied that each of the following tests is met:
• the person is unfit to be a trustee
• the order is desirable in the public interest in order to protect public trust and confidence in charities
• at least one of the six specified conditions applies
The six conditions are:
• a person has been cautioned for an offence against a charity or in the administration of a charity for which a conviction would bring automatic disqualification
• a person has been convicted of an offence in another country against a charity or similar body that, if committed here, would bring automatic disqualification from acting as a trustee
• a person has been found by HMRC not to be a ‘fit and proper person’ to be a manager of a body or trust
• a trustee, officer, agent or employee of a charity was responsible for, contributed to or facilitated misconduct or mismanagement in a charity or the person knew of the misconduct or mismanagement and failed to take any reasonable step to oppose it
• an officer or employee of a corporate trustee was responsible for, contributed to or facilitated misconduct or mismanagement in a charity or the person knew of the misconduct or mismanagement and failed to take any reasonable step to oppose it
• other conduct, whether or not in relation to a charity that is, or is likely to be, damaging to public trust and confidence in a charity or charities
90a1d87b-c1b5-43c3-a720-cd324830adee.tmb-editorspic.jpg?sfvrsn=1b2d0a7e_1)
