Trustee Disqualification
Persons disqualified for being trustees of a charitable organisation
A person shall cease to be qualified for, and shall cease to hold, the position of charity trustee of a charitable organisation if that person—
- is adjudicated bankrupt,
- makes a composition or arrangement with creditors,
- is a company that is in the course of being wound up,
- is convicted on indictment of an offence,
- is sentenced to a term of imprisonment by a court of competent jurisdiction,
- is the subject of an order under section 160 of the Companies Act 1990 or is prohibited, removed or suspended from being a trustee of a scheme under the Pensions Acts 1990 to 2008,
- has been removed from the position of charity trustee of a charitable organisation by an order of the High Court
High Court Consent
A person who is not qualified, or has ceased, to be a charity trustee of a charitable organisation may apply to the High Court for an order that he or she may hold the position of charity trustee of a particular charitable organisation or of a charitable organisation of a particular class, and the High Court may, upon such an application, make such an order if it considers that it would be in the public interest and in the best interests of the charitable organisation concerned or charitable organisations of the class concerned for it to make such an order.
Where the High Court makes an order that a person may, by virtue of that order, hold the position of charity trustee of—
- the charitable organisation to which the order relates, or
- a charitable organisation of the class to which the order relates,
but if, after the making of the order, any of the above events occurs, the order shall cease to have effect and the relevant provisions shall apply.
Register of Disqualified Persons
The Authority shall establish and maintain a register of all persons who have ceased to hold the position of charity trustee of a charitable organisation by virtue of the above provisions.
The Authority shall, from time to time, review each entry in the register established. If it becomes aware that any particular in that register is incorrect or has ceased to be correct, it shall make such alterations to that register as it considers necessary.
The register established and maintained shall be made available for inspection by members of the public at all reasonable times at the principal office of the Authority.
Person acting as charity trustee while disqualified.
A person who acts, or purports to act, as a charity trustee of a charitable organisation at any time while he or she is, not qualified for that position shall be guilty of an offence.
Any act done by a person—
- in purported performance of the functions of charity trustee of a charitable organisation, and
- while he or she was not qualified to hold that position,
shall not be invalid by reason only of the person not being so qualified.
Where a person who, at any time when he or she was, not qualified to hold the position of charity trustee of a charitable organisation, received from the charitable organisation any remuneration or expenses, or any benefit in kind, in connection with his or her acting, or purporting to act, as charity trustee of the charitable organisation, he or she shall repay to the charitable organisation those moneys and any benefit in kind or an amount equal to the monetary value of any benefit in kind.
Acting under directions of Disqualified Person
A charity trustee or a member of staff of a charitable organisation who complies with a direction of a person who—
- is not qualified to hold the position of charity trustee of that organisation, and
- purported to give the direction as a charity trustee of the organisation,
shall be guilty of an offence if, at the time of his or her so complying, he or she knew or had reasonable grounds for knowing that the person who gave the direction was not qualified to hold the position of charity trustee of that organisation.
Where a person is convicted of an offence he or she shall cease to be qualified for the position of charity trustee of a charitable organisation, and if, immediately before the date of his or her conviction, he or she held the position of charity trustee of a charitable organisation he or she shall cease to hold that position.
Consequences of acting under the direction of a person not qualified to be a charity trustee.
A person who is convicted of an offence in respect of a charitable organisation shall be personally liable for the debts of the charitable organisation incurred as a result of the commission by him or her of any act in purported performance by him or her of the functions of charity trustee of the charitable organisation at any time when he or she was not qualified to hold the position of charity trustee of the charitable organisation.
A person who is convicted of an offence n respect of a charitable organisation shall be personally liable for the debts of the charitable organisation incurred as a result of the commission by him or her of any act in compliance with the direction to which the offence related.
In proceedings brought against a person for the recovery of a debt the court may, subject to such conditions as it considers appropriate, grant relief in whole or in part from the liability to which the person would otherwise be subject, if it considers it just and equitable to so do having regard to the circumstances of the case.