The Regulator for Charities in England and Wales


OPERATIONAL GUIDANCE

ORDERS AND SCHEMES

CHARITIES GOVERNED BY STATUTE OR ROYAL CHARTER

OG 1 B6 – 19 March 2004


Purpose: to set out the circumstances in which we may make or settle a Scheme for the administration of a charity governed by statute or Royal Charter and the procedures to follow.


Functional responsibility

For information:

Regulatory Framework
Status


Contents

1. S.17 Schemes
2. S.15 Schemes

Meaning of expressions - list of Glossary terms used in this Guidance
Index to further related information

 

Legal Requirement Symbol

Legal Advice Symbol

Accountancy Advice Symbol

The law

Refer to a lawyer

Refer to an accountant

   
 

1. S.17 Schemes

1.1 The law
1.2 Legal Division responsibility

   
 

1.1 The law

Legal Requirement Symbol

S.17 of the 1993 Act enables us to settle (but not make) a Scheme for the administration of a charity established or regulated by Act of Parliament where we consider that it is:

Legal Requirement Symbol

  • necessary or desirable to:

Legal Requirement Symbol

 
  • alter an Act of Parliament establishing or regulating the charity; or

Legal Requirement Symbol

 
  • make some other provision beyond our normal powers; or

Legal Requirement Symbol

  • proper for the Scheme to be subject to parliamentary review (s.17(1)).
   
 

1.2 Legal Division responsibility

Legal Advice Symbol

All work in connection with a charity established or regulated by Act of Parliament is currently dealt with in Legal Division.

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2. S.15 Schemes

 

2.1 The law
2.2 Functional responsibility

   
 

2.1 The law

Legal Requirement Symbol

S.15 of the 1993 Act introduced a simplified procedure for altering the trusts of a charity governed by Royal Charter.

Legal Requirement Symbol

Where a Royal Charter establishing or regulating a charitable corporation is amendable by the grant and acceptance of a further Charter, we may make a Scheme relating to the charity, or to the administration of its property, (including a cy-près Scheme) but any part of the Scheme which requires the Charter to be altered cannot take effect until this alteration is made. The Scheme must be framed so as to make this clear (s.15(1)).

Legal Requirement Symbol

Amendment of the Royal Charter will be made:

Legal Requirement Symbol

  • in accordance with the terms of any power of amendment included in the Charter itself; or

Legal Requirement Symbol

  • where there is no power of amendment, by Order in Council following an application by the charity (s.15(2)).
 

In practice, most Charters include a power of amendment (including a power to amend the bye-laws or other provisions made under them). This will usually be by some relatively informal means such as a power of amendment exercised by the charity subject to the approval of the Queen in Council or the Privy Council.

   
 

2.2 Functional responsibility

 

Such Schemes will normally be dealt with by Regulatory Framework (acting on legal advice where appropriate), unless they deal with issues which are novel, or have special legal difficulty, or are legally contentious, or where other circumstances exist making it more appropriate for Legal division to take direct responsibility for the Scheme.

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The following words and phrases are defined in the Glossary of Terms:

 



1993 Act
cy-près
trustees


Go to: Index to further related information