OPERATIONAL GUIDANCE
DISQUALIFICATION FOR ACTING AS A CHARITY TRUSTEE
OVERVIEW
OG 41 A1 – 27 February 2007
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This guidance details the law regarding when a trustee may be disqualified from acting as such. |
Contents
1. Disqualification under Charities Act 1993
2. Disqualifications under other legislation
Glossary of Terms used in this Guidance
Index to further related information
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| The Law |
Refer to a lawyer |
Refer to an accountant |
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1. Disqualification under Charities Act 1993 |
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Disqualification for acting as a charity trustee means that a person cannot act as a trustee until the period of disqualification expires. |
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S.72(1) of the 1993 Act provides that a person shall be disqualified for being a charity trustee or trustee for a charity if that person: |
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has been convicted of any offence involving dishonesty or deception (but see OG 41 B4 about spent convictions); |
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has been adjudged bankrupt, or sequestration of his or her estate has been awarded, and in either case he or she has not been discharged, or if he or she is the subject of a bankruptcy restrictions order or an interim order, or in respect of whom a bankruptcy restrictions undertaking has effect, except that there is no disqualification under this paragraph if the charity concerned is a company and leave has been granted under s.11 of the Company Directors Disqualification Act 1986 (undischarged bankrupts) for him or her to act as director of the charity (s.72(3)); |
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has made a composition or arrangement with, or granted a trust deed for, his or her creditors and has not been discharged in respect of it; |
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has been removed from the office of charity trustee or trustee for a charity by an Order of the Commission under s.18(2) of the 1993 Act (or s.20(1) or (1A) of the Charities Act 1960), or by an Order made by the High Court, on the grounds of any misconduct or mismanagement in the administration of the charity, for which he or she was responsible or to which he or she was privy or which he or she by his or her conduct contributed to or facilitated; |
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has been removed, under s.7 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (powers of Court of Session to deal with management of charities), from being concerned in the management or control of any body; |
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is subject to a disqualification order under the Company Directors Disqualification Act 1986 or to an order made under s.429(2)(b) of the Insolvency Act 1986 (failure to pay under a County Court administration order), except that there is no disqualification under this paragraph if leave has been granted for him or her to act as director of the charity |
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These provisions apply whether the relevant event occurred before or after s.72 came into force. A disqualified trustee cannot act as a trustee but only until the period of disqualification expires. |
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2. Disqualifications under other legislation |
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The child protection provisions of the Criminal Justice and Court Services Act 2000 came into force on 11 January 2001. Briefly, part II of this Act bans a range of individuals from "working with children" as defined in the Act. This includes the trusteeship of children’s charities. |
Index to further related information