05 June 2015
The Charity Commission is consulting on its newest power which would allow it to disqualify trustees.
The Charities (Protection and Social Investment) Bill would give the commission power to make orders disqualifying individuals from acting as trustees under certain circumstances.
The Charity Commission has stated that it recognises that this is a significant new power and therefore would like to offer reassurance that the power will only be used when there is a clear case for doing so.
It adds that in outlining its approach in a policy paper, the Charity Commission is trying to provide reassurance. The regulator hopes that it will help answer questions that may arise during the passage of the Bill.
If the Bill becomes law the commission will work further on the paper and intends to hold a public consultation on its approach before it is finalised.
The Charity Commission adds that there are important safeguards built into the process. Before an order is made there will be a notice period in which the individual would be able to make representations to the commission contesting its decision. They will also have the right to appeal to the First-tier Tribunal (Charity) (‘the Tribunal’) if an order is made and to apply for the equivalent of a waiver.
Further details on how the Charity Commission intends to decide whether someone is an unfit trustee are explained in its policy paper.