Statement from the Commission regarding young people under 18 years old as charity trustees

In May this year we registered Funky Dragon, the Welsh youth parliament, as a charity, with four of the eight trustees being under 18 years old. As Funky Dragon specifically represents the interests of young people, it seemed only right to us that young people should be involved in managing the charity.

For some youth organisations it will often be appropriate for young people under 18 to be on the board, and the Commission is supportive of the wishes of youth organisations who wish to have some people under 18 on the board to ensure appropriate user representation.

Broadly a charity can take one of three legal forms – a company, a trust or an unincorporated association. The directors of a charitable company are its charity trustees. There is no restriction upon young people under the age of 18 being company directors – the test is whether the person understands their duties and responsibilities. The trustees of a trust or of an unincorporated association are in a different position because the law specifically states that a person under the age of 18 cannot be a trustee of this type of organisation.

Funky Dragon is a charitable company so it is perfectly legal for it to have young people under the age of 18 as directors.

If you have decided that it is appropriate for your charity to appoint someone under 18 to be a trustee, the charity must be formed as a company limited by guarantee. You particularly need to think about the following issues.

• Check your Memorandum and Articles of Association to ensure that there isn’t a clause preventing anyone under 18 from being a director of the company. If there is, this clause will need to be amended, following the procedures set out in the Memorandum and Articles of Association.
• You should consider carefully what restrictions, for practical reasons, should be placed on the total number of charity trustees who can be under 18. In the case of Funky Dragon we were satisfied that up to 50% of the charity trustee board could be composed of young people aged under 18. This reflects the nature of that charity and we would not currently recommend a larger proportion. The decision should be taken in the light of the specific circumstances of each charity. This should take into account the scale of the charity, the complexity of its activities and governance, and the range of skills and experience required on the charity trustee board.
• Ensure that prospective trustees are aware of their duties and responsibilities before they are appointed. This is important for all prospective trustees, not just those under 18.
• In some circumstances parents can be liable for the actions of their children. Parental liability would only normally arise where the parent has become involved in the running of the charity by encouraging the child to do or not to do something. We advise that parents of under 18s who are invited to become the director of a charitable company, are made aware of the duties and responsibilities of being a director, before appointment.
• If the charitable company has taken out insurance against the consequences, for the charity, of a breach of duty by the director, the insurance might not cover directors who are under 18 and this is something to check with the insurer.

For unincorporated associations and trusts, even though they cannot appoint under 18s as trustees, they can still involve young people in the decision making process by, for example, asking them to look into specific issues and making recommendations to the trustees.

November 2004