(3) The court or the Commission may make a common investment scheme on the
application of any two or more charities.

97 Bodies which may participate in common investment schemes

(1) A common investment scheme—

(a) 5may be made in terms admitting any charity to participate, or

(b) may restrict the right to participate in any manner.

(2) A common investment scheme may provide for appropriate bodies to be
admitted to participate in the scheme (in addition to the participating charities)
to such extent as the trustees appointed to manage the fund may determine.

(3) 10In this section “appropriate body” means—

(a) a Scottish recognised body, or

(b) a Northern Ireland charity,

and, in the application of the relevant provisions in relation to a scheme which
contains provisions authorised by subsection (2), “charity” includes an
15appropriate body.

(4) The relevant provisions are—

(a) section 96(1) (power to make common investment schemes),

(b) section 98 (provisions which may be included in common investment
schemes),

(c) 20section 99(1) (provisions relating to rights of participating charity etc.),
and

(d) (in relation only to a Northern Ireland charity) section 99(2) (power to
participate in common investment schemes).

98 Provisions which may be included in common investment schemes

(1) 25A common investment scheme may make provision for, and for all matters
connected with, the establishment, investment, management and winding up
of the common investment fund, and may in particular include provision—

(a) for remunerating persons appointed trustees to hold or manage the
fund or any part of it, with or without provision authorising a person
30to receive the remuneration even though the person is also a charity
trustee of or trustee for a participating charity;

(b) for restricting the size of the fund, and for regulating as to time, amount
or otherwise the right to transfer property to or withdraw it from the
fund, and for enabling sums to be advanced out of the fund by way of
35loan to a participating charity pending the withdrawal of property
from the fund by the charity;

(c) for enabling income to be withheld from distribution with a view to
avoiding fluctuations in the amounts distributed, and generally for
regulating distributions of income;

(d) 40for enabling money to be borrowed temporarily for the purpose of
meeting payments to be made out of the funds;

(e) for enabling questions arising under the scheme as to the right of a
charity to participate, or as to the rights of participating charities, or as
to any other matter, to be conclusively determined by the decision of
45the trustees managing the fund or in any other manner;

(f) for regulating the accounts and information to be supplied to
participating charities.

(2) A common investment scheme, in addition to the provision for property to be
transferred to the fund on the basis that the charity is to be entitled to a share
5in the capital and income of the fund, may include provision for enabling sums
to be deposited by or on behalf of a charity on the basis that (subject to the
provisions of the scheme) the charity is to be entitled—

(a) to repayment of the sums deposited, and

(b) to interest on them at a rate determined by or under the scheme.

(3) 10Where a scheme makes any such provision it must also provide for excluding
from the amount of capital and income to be shared between charities
participating otherwise than by way of deposit such amounts (not exceeding
the amounts properly attributable to the making of deposits) as are from time
to time reasonably required in respect of the liabilities of the fund—

(a) 15for the repayment of deposits, and

(b) for the interest on deposits,

including amounts required by way of reserve.

99 Further provisions relating to common investment schemes and funds

(1) Except in so far as a common investment scheme provides to the contrary—

(a) 20the rights under it of a participating charity are not capable of being
assigned or charged;

(b) a trustee or other person concerned in the management of the common
investment fund is not required or entitled to take account of any trust
or other equity affecting a participating charity or its property or rights.

(2) 25The powers of investment of every charity include power to participate in
common investment schemes unless the power is excluded by a provision
specifically referring to common investment schemes in the trusts of the
charity.

(3) A common investment fund is to be treated for all purposes as being a charity.

(4) 30Subsection (3) applies not only to common investment funds established under
section 96, but also to any similar fund established for the exclusive benefit of
charities by or under any enactment relating to any particular charities or class
of charities.

100 Power to make common deposit schemes

(1) 35The court or the Commission may by order make and bring into effect schemes
for the establishment of common deposit funds under trusts which provide—

(a) for sums to be deposited by or on behalf of a charity participating in the
scheme and invested under the control of trustees appointed to manage
the fund, and

(b) 40for any such charity to be entitled (subject to the provisions of the
scheme) to repayment of any sums so deposited and to interest on them
at a rate determined under the scheme.

(2) In this section and sections 101 to 103 “common deposit scheme” means a
scheme under subsection (1).

(3) The court or the Commission may make a common deposit scheme on the
application of any two or more charities.

101 Bodies which may participate in common deposit schemes

(1) A common deposit scheme—

(a) 5may be made in terms admitting any charity to participate, or

(b) may restrict the right to participate in any manner.

(2) A common deposit scheme may provide for appropriate bodies to be admitted
to participate in the scheme (in addition to the participating charities) to such
extent as the trustees appointed to manage the fund may determine.

(3) 10In this section “appropriate body” means—

(a) a Scottish recognised body, or

(b) a Northern Ireland charity,

and, in the application of the relevant provisions in relation to a scheme which
contains provisions authorised by subsection (2), “charity” includes an
15appropriate body.

(4) The relevant provisions are—

(a) section 100(1) (power to make common deposit schemes),

(b) section 102 (provisions which may be included in common deposit
schemes),

(c) 20section 103(1) (provisions relating to rights of participating charity etc.),
and

(d) (in relation only to a Northern Ireland charity) section 103(2) (power to
participate in common deposit schemes).

102 Provisions which may be included in common deposit schemes

25A common deposit scheme may make provision for, and for all matters
connected with, the establishment, investment, management and winding up
of the common deposit fund, and may in particular include provision—

(a) for remunerating persons appointed trustees to hold or manage the
fund or any part of it, with or without provision authorising a person
30to receive the remuneration even though the person is also a charity
trustee of or trustee for a participating charity;

(b) for regulating as to time, amount or otherwise the right to repayment
of sums deposited in the fund;

(c) for authorising a part of the income for any year to be credited to a
35reserve account maintained for the purpose of counteracting any losses
accruing to the fund, and generally for regulating the manner in which
the rate of interest on deposits is to be determined from time to time;

(d) for enabling money to be borrowed temporarily for the purpose of
meeting payments to be made out of the funds;

(e) 40for enabling questions arising under the scheme as to the right of a
charity to participate, or as to the rights of participating charities, or as
to any other matter, to be conclusively determined by the decision of
the trustees managing the fund or in any other manner;

(f) for regulating the accounts and information to be supplied to
45participating charities.

103 Further provisions relating to common deposit schemes and funds

(1) Except in so far as a common deposit scheme provides to the contrary—

(a) the rights under it of a participating charity are not capable of being
assigned or charged;

(b) 5a trustee or other person concerned in the management of the common
deposit fund is not required or entitled to take account of any trust or
other equity affecting a participating charity or its property or rights.

(2) The powers of investment of every charity include power to participate in
common deposit schemes unless the power is excluded by a provision
10specifically referring to common deposit schemes in the trusts of the charity.

(3) A common deposit fund is to be treated for all purposes as being a charity.

(4) Subsection (3) applies not only to common deposit funds established under
section 100, but also to any similar fund established for the exclusive benefit of
charities by or under any enactment relating to any particular charities or class
15of charities.

104 Meaning of “Scottish recognised body” and “Northern Ireland charity”

(1) In sections 97 and 101 “Scottish recognised body” means a body–

(a) established under the law of Scotland, or

(b) managed or controlled wholly or mainly in or from Scotland,

20to which HMRC have given intimation, which has not subsequently been
withdrawn, that tax relief is due in respect of income of the body which is
applicable and applied to charitable purposes only.

(2) In sections 97 and 101 “Northern Ireland charity” means an institution—

(a) which is a charity under the law of Northern Ireland, and

(b) 25to which HMRC have given intimation, which has not subsequently
been withdrawn, that tax relief is due in respect of income of the
institution which is applicable and applied to charitable purposes only.

(3) For the purposes of this section—

• “HMRC” means the Commissioners for Her Majesty’s Revenue and
  30Customs;

• “tax relief” means relief under—

  (a)

  Part 10 of the Income Tax Act 2007, or

  (b)

  any provision of Part 11 of the Corporation Tax Act 2010 other
  than sections 480 (exemption for profits of small-scale trades)
  35and 481 (exemption from charges under provisions to which
  section 1173 applies).

Power to authorise dealings with charity property, ex gratia payments etc.

105 Power to authorise dealings with charity property etc.

(1) Subject to the provisions of this section, where it appears to the Commission
40that any action proposed or contemplated in the administration of a charity is
expedient in the interests of the charity, the Commission may by order sanction
that action, whether or not it would otherwise be within the powers exercisable
by the charity trustees in the administration of the charity.

(2) Anything done under the authority of an order under this section is to be
treated as properly done in the exercise of those powers.

(3) An order under this section—

(a) may be made so as to authorise a particular transaction, compromise or
5the like, or a particular application of property, or so as to give a more
general authority, and

(b) may authorise a charity to use common premises, or employ a common
staff, or otherwise combine for any purpose of administration, with any
other charity.

10Paragraph (b) does not affect the generality of subsection (1).

(4) An order under this section may give directions—

(a) as to the manner in which any expenditure is to be borne, and

(b) as to other matters connected with or arising out of the action
authorised by the order.

(5) 15Where anything is done in pursuance of an authority given by an order under
this section, any directions given in connection with that authority—

(a) are binding on the charity trustees for the time being as if contained in
the trusts of the charity, but

(b) may on the application of the charity be modified or superseded by a
20further order.

(6) The directions which may be given by an order under this section in particular
include directions—

(a) for meeting any expenditure out of a specified fund,

(b) for charging any expenditure to capital or to income,

(c) 25for requiring expenditure charged to capital to be recouped out of
income within a specified period,

(d) for restricting the costs to be incurred at the expense of the charity, or

(e) for the investment of money arising from any transaction.

This does not affect the generality of subsection (4).

(7) 30An order under this section may authorise any act even though—

(a) it is prohibited by the Ecclesiastical Leases Act 1836, or

(b) the trusts of the charity provide for the act to be done by or under the
authority of the court.

(8) But an order under this section may not—

(a) 35authorise the doing of any act expressly prohibited by any Act other
than the Ecclesiastical Leases Act 1836, or by the trusts of the charity, or

(b) extend or alter the purposes of the charity.

(9) In the case of a charitable company, an order under this section may authorise
an act even though it involves the breach of a duty imposed on a director of the
40company under Chapter 2 of Part 10 of the Companies Act 2006 (general duties
of directors).

(10) An order under this section does not confer any authority in relation to a
building which has been consecrated and of which the use or disposal is
regulated, and can be further regulated, by a scheme having effect or treated as
45having effect under or by virtue of the Mission and Pastoral Measure 2011.

(11) The reference in subsection (10) to a building is to be treated as including—

(a) part of a building, and

(b) any land which under such a scheme is to be used or disposed of with
a building to which the scheme applies.

106 Power to authorise ex gratia payments etc.

(1) 5Subject to subsection (5), the Commission may by order exercise the same
power as is exercisable by the Attorney General to authorise the charity
trustees of a charity to take any action falling within subsection (2)(a) or (b) in
a case where the charity trustees—

(a) (apart from this section) have no power to take the action, but

(b) 10in all the circumstances regard themselves as being under a moral
obligation to take it.

(2) The actions are—

(a) making any application of property of the charity, or

(b) waiving to any extent, on behalf of the charity, its entitlement to receive
15any property.

(3) The power conferred on the Commission by subsection (1) is exercisable by the
Commission under the supervision of, and in accordance with such directions
as may be given by, the Attorney General.

(4) Any such directions may in particular require the Commission, in such
20circumstances as are specified in the directions—

(a) to refrain from exercising the power conferred by subsection (1), or

(b) to consult the Attorney General before exercising it.

(5) Where—

(a) an application is made to the Commission for it to exercise the power
25conferred by subsection (1) in a case where it is not precluded from
doing so by any such directions, but

(b) the Commission considers that it would nevertheless be desirable for
the application to be entertained by the Attorney General rather than by
the Commission,

30the Commission must refer the application to the Attorney General.

(6) It is hereby declared that where—

(a) an application is made to the Commission as mentioned in subsection
(5)(a), and

(b) the Commission determines the application by refusing to authorise
35charity trustees to take any action falling within subsection (2)(a) or (b),

that refusal does not preclude the Attorney General, on an application
subsequently made to the Attorney General by the charity trustees, from
authorising them to take that action.

Power to give directions about dormant bank accounts of charities

107 40Power to direct transfer of credits in dormant bank accounts

(1) The Commission may give a direction under subsection (2) where—

(a) it is informed by a relevant institution—

(i) that it holds one or more accounts in the name of or on behalf of
a particular charity (“the relevant charity”), and

(ii) that the account, or (if it so holds two or more accounts) each of
the accounts, is dormant, and

(b) 5it is unable, after making reasonable inquiries, to locate that charity or
any of its trustees.

(2) A direction under this subsection is a direction which—

(a) requires the institution concerned to transfer the amount, or (as the case
may be) the aggregate amount, standing to the credit of the relevant
10charity in the account or accounts in question to such other charity as is
specified in the direction in accordance with subsection (3), or

(b) requires the institution concerned to transfer to each of two or more
other charities so specified in the direction such part of that amount or
aggregate amount as is there specified in relation to that charity.

(3) 15The Commission—

(a) may specify in a direction under subsection (2) such other charity or
charities as it considers appropriate, having regard, in a case where the
purposes of the relevant charity are known to the Commission, to those
purposes and to the purposes of the other charity or charities, but

(b) 20must not so specify any charity unless it has received from the charity
trustees written confirmation that those trustees are willing to accept
the amount proposed to be transferred to the charity.

(4) Any amount received by a charity by virtue of this section is to be received by
the charity on terms that—

(a) 25it is to be held and applied by the charity for the purposes of the charity,
but

(b) as property of the charity, it is nevertheless subject to any restrictions
on expenditure to which it was subject as property of the relevant
charity.

(5) 30The receipt of any charity trustees or trustee for a charity in respect of any
amount received from a relevant institution by virtue of this section is a
complete discharge of the institution in respect of that amount.

108 Accounts which cease to be dormant before transfer

(1) This section applies where—

(a) 35the Commission has been informed as mentioned in section 107(1)(a)
by any relevant institution, and

(b) before any transfer is made by the institution in pursuance of a
direction under section 107(2), the institution has, by reason of any
circumstances, cause to believe that the account, or (as the case may be)
40any of the accounts, held by it in the name of or on behalf of the relevant
charity is no longer dormant.

(2) The institution must without delay notify those circumstances in writing to the
Commission.

(3) If it appears to the Commission that the account or accounts in question is or
45are no longer dormant, it must revoke any direction under section 107(2) which
has previously been given by it to the institution with respect to the relevant
charity.

109 Dormant bank accounts: supplementary

(1) No obligation as to secrecy or other restriction on disclosure (however
imposed) precludes a relevant institution from disclosing any information to
the Commission for the purpose of enabling the Commission to discharge its
5functions under sections 107 and 108.

(2) For the purposes of sections 107 and 108 and this section, an account is
dormant if no transaction, other than—

(a) a transaction consisting in a payment into the account, or

(b) a transaction which the institution holding the account has itself caused
10to be effected,

has been effected in relation to the account within the period of 5 years
immediately preceding the date when the Commission is informed as
mentioned in section 107(1)(a).

(3) For the purposes of sections 107 and 108 and this section, a “relevant
15institution” means—

(a) the Bank of England,

(b) a person who has permission under Part 4 of the Financial Services and
Markets Act 2000 to accept deposits,

(c) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to
20that Act which has permission under paragraph 15 of that Schedule (as
a result of qualifying for authorisation under paragraph 12(1) of that
Schedule) to accept deposits, or

(d) such other person who may lawfully accept deposits in the United
Kingdom as may be prescribed by the Minister.

(4) 25In subsection (3), paragraphs (b) to (d) are to be read with—

(a) section 22 of the Financial Services and Markets Act 2000,

(b) any relevant order under that section, and

(c) Schedule 2 to that Act.

(5) For the purposes of sections 107 and 108, references to the transfer of any
30amount to a charity are references to its transfer—

(a) to the charity trustees, or

(b) to any trustee for the charity,

as the charity trustees may determine (and any reference to any amount
received by a charity is to be read accordingly).

(6) 35For the purpose of determining the matters in respect of which any of the
powers conferred by sections 46 to 53 (inquiries and searches) may be exercised
it is to be assumed that the Commission has no functions under section 107 or
108 in relation to accounts to which this subsection applies.

(This has the result that, for example, a relevant institution is not, in connection
40with the Commission’s functions under sections 107 and 108, required under
section 47(2)(a) to provide any statements, or answer any questions or
inquiries, with respect to any such accounts held by the institution.)

(7) Subsection (6) applies to accounts which—

(a) are dormant accounts by virtue of subsection (2), but

(b) 45would not be dormant accounts if subsection (2)(a) were omitted.

Additional powers of Commission

110 Power to give advice

(1) The Commission may, on the written application of any charity trustee or
trustee for a charity, give the applicant its opinion or advice in relation to any
5matter—

(a) relating to the performance of any duties of the applicant, as such a
trustee, in relation to the charity concerned, or

(b) otherwise relating to the proper administration of the charity.

(2) A person (“P”) who—

(a) 10is a charity trustee or trustee for a charity, and

(b) acts in accordance with any opinion or advice given by the Commission
under subsection (1) (whether to P or another trustee),

is to be treated, as regards P’s responsibility for so acting, as having acted in
accordance with P’s trust.

(3) 15But subsection (2) does not apply to P if, when so acting—

(a) P knows or has reasonable cause to suspect that the opinion or advice
was given in ignorance of material facts, or

(b) a decision of the court or the Tribunal has been obtained on the matter
or proceedings are pending to obtain one.

111 20Power to determine membership of charity

(1) The Commission may—

(a) on the application of a charity, or

(b) at any time after the institution of an inquiry under section 46 with
respect to a charity,

25determine who are the members of the charity.

(2) The Commission’s power under subsection (1) may also be exercised by a
person appointed by the Commission for the purpose.

(3) In a case within subsection (1)(b) the Commission may, if it thinks fit, so
appoint the person appointed to conduct the inquiry.

112 30Power to order assessment of solicitor’s bill

(1) The Commission may order that a solicitor’s bill of costs for business done for
a charity, or for charity trustees or trustees for a charity, is to be assessed,
together with the costs of the assessment—

(a) by a costs officer in such division of the High Court as may be specified
35in the order, or

(b) by the costs officer of any other court having jurisdiction to order the
assessment of the bill.

(2) On any order under this section for the assessment of a solicitor’s bill—

(a) the assessment is to proceed,

(b) 40the costs officer has the same powers and duties, and

(c) the costs of the assessment are to be borne,

as if the order had been made, on the application of the person chargeable with
the bill, by the court in which the costs are assessed.

(3) No order under this section for the assessment of a solicitor’s bill is to be made
after payment of the bill, unless the Commission is of opinion that it contains
exorbitant charges.

(4) No order under this section is to be made in any case where the solicitor’s costs
5are not subject to assessment on an order of the High Court because of—

(a) an agreement as to the solicitor’s remuneration, or

(b) the lapse of time since payment of the bill.

Legal proceedings relating to charities

113 Petitions for winding up charities under Insolvency Act

(1) 10This section applies where a charity may be wound up by the High Court
under the Insolvency Act 1986.

(2) A petition for the charity to be wound up under the 1986 Act by any court in
England or Wales having jurisdiction may be presented by the Attorney
General, as well as by any person authorised by that Act.

(3) 15Such a petition may also be presented by the Commission if, at any time after
it has instituted an inquiry under section 46 with respect to the charity, it is
satisfied either as mentioned in section 76(1)(a) (misconduct or
mismanagement etc.) or as mentioned in section 76(1)(b) (need to protect
property etc.).

(4) 20The power exercisable by the Commission by virtue of this section is
exercisable—

(a) by the Commission of its own motion, but

(b) only with the agreement of the Attorney General on each occasion.

114 Proceedings by the Commission

(1) 25Subject to subsection (2), the Commission may exercise the same powers with
respect to—

(a) the taking of legal proceedings with reference to charities or the
property or affairs of charities, or

(b) the compromise of claims with a view to avoiding or ending such
30proceedings,

as are exercisable by the Attorney General acting ex officio.

(2) Subsection (1) does not apply to the power of the Attorney General under
section 113(2) to present a petition for the winding up of a charity.

(3) The practice and procedure to be followed in relation to any proceedings taken
35by the Commission under subsection (1) are the same in all respects (and in
particular as regards costs) as if they were proceedings taken by the Attorney
General acting ex officio.

(4) No rule of law or practice is to be treated as requiring the Attorney General to
be a party to any such proceedings.

(5) 40The powers exercisable by the Commission by virtue of this section are
exercisable—

(a) by the Commission of its own motion, but