OG1 D6 - DRAFT S.16 SCHEME (GENERAL POWER OF AMENDMENT FOR A CHARITY WITH TRUSTEES)

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OPERATIONAL GUIDANCE

ORDERS AND SCHEMES

DRAFT S.16 SCHEME (GENERAL POWER OF AMENDMENT FOR A CHARITY WITH TRUSTEES)

OG 1 D6 - 10 May 2004

Purpose

To reproduce the model Scheme sent to charities with individual trustees. Similar Schemes are available for charities with a committee of trustees, and for charities with a corporate trustee.

Functional responsibility

For action

Regulatory Framework

For information

All operational divisions

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OG 1 A2 provides guidance on Schemes. Section 5 of that OG explains when a charity might need a Scheme, for example, to alter the trusts of a charity, where it is not possible or appropriate to confer a power on the trustees by Order under s.26.

	THE CHARITY COMMISSIONERS FOR ENGLAND AND WALES
	Under the power given in the Charities Act 1993
	Order that from today, the

	the following
	SCHEME
	will alter or affect the governing document of the charity
	known as

	at

1.	Power of amendment
	(1)	The trustees (subject to the provisions of this clause) may from time to time amend the trusts if they are satisfied that it is expedient in the interests of the charity to do so.
	(2)	The trustees must not make any amendment which would have the effect directly or indirectly of:
		(a)	altering or extending the purposes of the charity;
		(b)	authorising the trustees to do anything which is expressly prohibited by the trusts of the charity;
		(c)	causing the charity to cease to be a charity at law;
		(d)	altering or extending the power of amendment that is conferred by this clause.
	(3)	The trustees must obtain the prior written approval of the Commissioners before making any amendment which would have the effect directly or indirectly of:
		(a)	enabling them to spend permanent endowment or capitalise income of the charity;
		(b)	conferring a benefit of any kind on all or any of the current trustees or their successors;
		(c)	restricting the existing right of any person (other than the trustees) to appoint or remove a charity trustee, or trustee for the charity, or to intervene in the administration of the charity, without the consent of that person;
		(d)	varying the name of the charity.
	(4)	An amendment may be made only by a resolution passed at a meeting of the trustees of which not less than 21 days notice has been given. The notice must set out the terms of the proposed amendment.
	(5)	The trustees must:
		(a)	prepare a written memorandum of each amendment that it makes, which must be signed at the meeting at which the amendment is made by the person chairing the meeting;
		(b)	send to the Commissioners a certified copy of the memorandum within three months of the date of the meeting; and
		(c)	retain the memorandum as part of the governing document.

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