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Charities (Protection and Social Investment) Bill (HC Bill 116)

A

BILL

[AS AMENDED IN PUBLIC BILL COMMITTEE]

TO

Amend the Charities Act 1992 and the Charities Act 2011.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

1 Official warnings by the Commission

Before section 76 of the Charities Act 2011, after the heading “Powers of
Commission to act for protection of charities etc” insert—

75A Official warnings by the Commission

(1) 5The Commission may issue a warning—

(a) to a charity trustee or trustee for a charity who it considers has
committed a breach of trust or duty or other misconduct or
mismanagement in that capacity, or

(b) to a charity in connection with which it considers a breach of
10trust or duty or other misconduct or mismanagement has been
committed.

(2) The Commission—

(a) may publish a warning it has issued;

(b) may issue or publish a warning in any way it considers
15appropriate.

(3) Before issuing a warning under this section, the Commission must give
notice of its intention to do so to the charity, and each charity trustee or
trustee for the charity, except any who cannot be found or who has no
known address in the United Kingdom.

(4) 20Any such notice—

(a) may be given by post, and

Charities (Protection and Social Investment) BillPage 2

(b) if given by post, may be addressed to the recipient’s last known
address in the United Kingdom.

(5) The notice must specify—

(a) the power under subsection (1) to give the warning, and the
5grounds for the warning;

(b) any action that the Commission considers should be taken, or
that the Commission is considering taking, to rectify the
misconduct or mismanagement referred to in subsection (1);

(c) whether and, if so, how the Commission proposes to publish
10the warning;

(d) a period within which representations may be made to the
Commission about the content of the proposed warning.

(6) Where the Commission gives notice under subsection (3) of its
intention to issue a warning—

(a) 15it must take into account any representations made to it within
the period specified in the notice, and

(b) it may (without further notice) issue the warning either without
modifications or with such modifications as it thinks desirable.”

2 Investigations and power to suspend

(1) 20Section 76 of the Charities Act 2011 (suspension of trustees etc. and
appointment of interim managers) is amended as follows.

(2) In subsection (1)(a), for “any” substitute “a failure to comply with an order or
direction of the Commission, a failure to remedy any breach specified in a
warning under section 75A, or any other”.

(3) 25In subsection (4), at the end insert “, subject to any extension under subsection
(7)”.

(4) At the end add—

(7) At any time before the expiry of an order under paragraph (a) of
subsection (3) the Commission may extend or further extend the
30suspension by an order under that paragraph, provided that—

(a) the order does not extend the suspension for a period of more
than 12 months, and

(b) the total period of suspension is not more than 2 years.”

3 Range of conduct to be considered when exercising powers

35After section 76 of the Charities Act 2011 insert—

76A Exercise of powers where section 76(1)(a) applies

(1) This section applies to any power under this Part which is exercisable
in cases where the Commission is satisfied as mentioned in section
76(1)(a) in relation to a charity (misconduct or mismanagement), with
40or without any other condition.

(2) If in such a case the Commission is also satisfied—

(a) that a particular person has been responsible for the misconduct
or mismanagement,

Charities (Protection and Social Investment) BillPage 3

(b) that a particular person knew of the misconduct or
mismanagement and failed to take any reasonable step to
oppose it, or

(c) that a particular person’s conduct contributed to it or facilitated
5it,

the Commission may take into account the matters mentioned in
subsection (3) in deciding whether or how to exercise the power.

(3) Those matters are—

(a) the conduct of that person in relation to any other charity;

(b) 10any other conduct of that person that appears to the
Commission to be damaging or likely to be damaging to public
trust and confidence in charities generally or particular charities
or classes of charity.”

4 Power to remove trustees etc following an inquiry

(1) 15The Charities Act 2011 is amended as follows.

(2) For section 79 (Commission’s power to remove trustees etc following an
inquiry) substitute—

79 Removal of trustee or officer etc for protective etc purposes

(1) Subsection (2) applies where, at any time after it has instituted an
20inquiry under section 46 with respect to any charity, the Commission 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).

(2) The Commission may of its own motion by order establish a scheme for
25the administration of the charity.

(3) Subsection (4) applies where, at any time after it has instituted an
inquiry under section 46 with respect to any charity, the Commission is
satisfied both as mentioned in section 76(1)(a) (misconduct or
mismanagement etc) and as mentioned in section 76(1)(b) (need to
30protect property etc).

(4) Whether or not it acts under subsection (2), the Commission may of its
own motion by order remove any trustee, charity trustee, officer, agent
or employee of the charity—

(a) who has been responsible for the misconduct or
35mismanagement,

(b) who knew of the misconduct or mismanagement and failed to
take any reasonable step to oppose it, or

(c) whose conduct contributed to it or facilitated it.

(5) Where the Commission has given notice under section 82 of its
40intention to make an order under subsection (4) removing a person
from an office or employment, the Commission may proceed to make
the order even though the person has ceased to hold the office or
employment.

(6) Where an order is made relying on subsection (5)

Charities (Protection and Social Investment) BillPage 4

(a) section 81(1) (power to make supplementary provision) and
Case D in section 178(1) (disqualification) apply as if the person
was removed by the order, but

(b) the order does not affect the time when the person ceased to
5hold the office or employment.”

(3) In section 83(3) (power to suspend or remove trustees etc from membership of
charity)—

(a) for “79(2)” substitute “79(4)”;

(b) for “an officer,” substitute “a trustee, charity trustee, officer,”.

(4) 10In section 87(1) (supervision by Commission of certain Scottish charities), for
“79(2)(b)” substitute “79(1) and (2)”.

(5) In section 178(1) (automatic disqualification of charity trustees), in Case D for
“79(2)(a)” substitute “79(4)”.

(6) In Schedule 6 (appeals to tribunals), in the entry relating to an order made by
15the Commission under section 79(2) in relation to a charity—

(a) in column 1, after “79(2)” insert “or (4)”;

(b) in column 2, for “79(2)(a)” substitute “79(4)”.

5 Power to remove disqualified trustee

(1) The Charities Act 2011 is amended as follows.

(2) 20After section 79 insert—

79A Removal of disqualified trustee

The Commission may remove a charity trustee or trustee for a charity
by order made of its own motion if the person is disqualified from
being a charity trustee or trustee for a charity (generally or in relation
25to the charity concerned)—

(a) by virtue of section 178, or

(b) by an order under section 181A.”

(3) In section 82(1) (removal of trustees etc: notice), after “79” insert “, 79A”.

(4) In section 89(1) (orders relating to trustees etc: exceptions to publicity
30requirement), after paragraph (b) insert, “or

(c) an order under section 79A (removal of disqualified trustee),”.

(5) In section 89(5) (notice inviting representations on order to remove), after “an
order under this Act” insert “, other than an order under section 79A,”.

6 Power to direct specified action not to be taken

(1) 35The Charities Act 2011 is amended as follows.

(2) After section 84 insert—

84A Power to direct specified action not to be taken

(1) This section applies where, at any time after the Commission has
instituted an inquiry under section 46 with respect to any charity, the
40Commission considers that any action, if taken or continued by a

Charities (Protection and Social Investment) BillPage 5

person listed in section 84(2), would constitute misconduct or
mismanagement in the administration of the charity.

(2) The Commission may make an order specifying the action and
directing the person not to take it or continue it.

(3) 5While an order under this section is in force, the Commission must
review it at intervals of not more than 6 months.”

(3) In section 20 (incidental powers), in subsection (3) after “84” insert “, 84A”.

(4) In section 86(2) (copy of certain orders, and reasons, to be sent to charity) and
section 336(2)(a) (enforcement of orders of Commission) insert in the
10appropriate place—

  • “section 84A (power to direct specified action not to be taken),”.

(5) In Schedule 6 (appeals and applications to Tribunal), insert in the appropriate
place—

“Order made by the
Commission under section
84A(2) which directs a person
not to take action specified in
the order.
The persons are any person who
is directed by the order not to
take the specified action.
Power to quash the order and (if
15appropriate) remit the matter to
the Commission.”

7 Power to direct winding up

(1) 20The Charities Act 2011 is amended as follows.

(2) Before section 85 insert—

84B Power to direct winding up

(1) This section applies where the conditions in section 84(1) are met for
that section to apply, but the Commission is satisfied—

(a) 25that the charity does not operate, or

(b) that its purposes can be promoted more effectively if it ceases to
operate,

and that exercising the power in subsection (2) is expedient in the
public interest.

(2) 30The Commission may by order direct—

(a) the charity trustees,

(b) any trustee for the charity,

(c) any officer or employee of the charity, or

(d) (if a body corporate) the charity itself,

35to take any action specified in the order for the purpose of having the
charity wound up and dissolved, and any remaining property
transferred to a charity with the same purposes.

(3) An order under this section—

(a) may require action to be taken whether or not it would
40otherwise be within the powers exercisable by the person or
persons concerned, or by the charity, in relation to the winding
up and dissolution of the charity or to its property, and

Charities (Protection and Social Investment) BillPage 6

(b) in particular, may require the person or persons concerned to
do anything for the purpose of having the charity wound up
and dissolved and its property transferred that could otherwise
only be done by the members of the charity or any of them,

5but may not require any action to be taken which is prohibited by any
Act.

(4) Before making an order under this section the Commission must give
public notice of its intention to make the order, inviting representations
to be made to it within a period specified in the notice.

(5) 10The Commission—

(a) must take into account any representations made to it within
the period specified in the notice, and

(b) may make the order (without further notice) either without
modifications or with such modifications as it thinks desirable.

(6) 15An order under this section may not be made less than 60 days after the
first day on which public notice under subsection (4) is given, unless
the Commission is satisfied after complying with subsections (4) and
(5) that it is necessary to make the order to prevent or reduce
misconduct or mismanagement in the administration of the charity or
20to protect the property of the charity or property that may come to the
charity.

(7) Anything done by a person or body under the authority of an order
under this section is to be treated as properly done in the exercise of the
powers mentioned in subsection (3)(a).

(8) 25Subsection (7) does not affect any contractual or other rights arising in
connection with anything which has been done under the authority of
such an order.”

(3) In section 20 (incidental powers), in subsection (3) before “or 85” insert “, 84B”.

(4) In section 86(2) (copy of certain orders, and reasons, to be sent to charity) and
30section 336(2)(a) (enforcement of orders of Commission) insert in the
appropriate place—

  • “section 84B (power to direct winding up),”.

(5) In Schedule 6 (appeals and applications to Tribunal), insert in the appropriate
place—

“Order made by the
Commission under section
84B(2) which directs a person to
take action specified in the
order.
The persons are any person who
is directed by the order to take
the specified action.
35Power to quash the order and (if
appropriate) remit the matter to
the Commission.

Order made by the Commission
under section 84B(2) which
directs a person to do anything
that could otherwise only be
done by the members of the
charity or any of them.
The persons are the member or
members concerned.
40Power to quash the order and (if
appropriate) remit the matter to
the Commission.”


45

8 Power to direct property to be applied to another charity

(1) Section 85 of the Charities Act 2011 (power to direct application of charity
property where person is unwilling) is amended as follows.

(2) In subsection (1)(a), after “unwilling” insert “or unable”.

(3) 50After subsection (5) insert—

(6) Subsection (5) does not apply to rights of the charity or of a charity
trustee or trustee for the charity in that capacity.”

9 Automatic disqualification from being a trustee

(1) The Charities Act 2011 is amended as follows.

(2) 55Section 178 (persons disqualified from being charity trustees or trustees for a
charity) is amended as follows.

(3) In subsection (1), in Case A, for “of any offence involving dishonesty or
deception” substitute of—

(a) an offence specified in section 178A;

(b) 60an offence, not specified in section 178A, that involves
dishonesty or deception.”

(4) In Case D—

(a) for “from the office of charity trustee or trustee for a charity” substitute
“as a trustee, charity trustee, officer, agent or employee of a charity”;

(b) 65for “to which P was privy,” substitute “which P knew of and failed to
take any reasonable step to oppose,”.

(5) At the end of subsection (1) insert—

Case H

P has been found to be in contempt of court under Civil Procedure
Rules for—

(a) 70making a false disclosure statement, or causing one to be made,
or

(b) making a false statement in a document verified by a statement
of truth, or causing one to be made.

Case I

P has been found guilty of disobedience to an order or direction of the
75Commission on an application to the High Court under section 336(1).

Case J

P is a designated person for the purposes of—

(a) Part 1 of the Terrorist Asset-Freezing etc Act 2010, or

(b) the Al-Qaida (Asset-Freezing) Regulations 2011.

Case K

P is subject to the notification requirements of Part 2 of the Sexual
80Offences Act 2003.”

Charities (Protection and Social Investment) BillPage 7

(6) After subsection (2) insert—

(3) While a person is disqualified under this section in relation to a charity,
the person is also disqualified from holding an office or employment in
the charity with senior management functions.

(4) 5A function of an office or employment held by a person “(A)” is a senior
management function if—

(a) A is not responsible for it to another officer or employee (other
than a charity trustee or trustee for the charity), or

(b) it involves control over money and the only officer or employee
10(other than a charity trustee or trustee for the charity) to whom
A is responsible for it is a person with senior management
functions other than ones involving control over money.”

(7) After section 178 insert—

178A Case A: specified offences

(1) 15The following offences are specified for the purposes of Case A—

1 An offence to which Part 4 of the Counter-Terrorism Act 2008
applies (see sections 41 to 43 of that Act).
2 An offence under section 13 or 19 of the Terrorism Act 2000
(wearing of uniform etc, and failure to disclose information).
3 20A money laundering offence within the meaning of section 415
of the Proceeds of Crime Act 2002.
4

An offence under any of the following provisions of the Bribery
Act 2010—

(a)

25section 1 (bribing another person),

(b)

section 2 (offences relating to being bribed),

(c)

section 6 (bribery of foreign public officials),

(d)

section 7 (failure of commercial organisations to prevent
bribery).


30
5 An offence under section 77 of this Act.
6

An offence of—

(a)

misconduct in public office,

(b)

35perjury,

(c)

perverting the course of justice.


(2) An offence which has been superseded (directly or indirectly) by an
offence specified in subsection (1) is also specified for the purposes of
40Case A.

(3) In relation to an offence specified in subsection (1) or (2), the following
offences are also specified for the purposes of Case A—

(a) an offence of attempt, conspiracy or incitement to commit the
offence;

(b) 45an offence of aiding, abetting, counselling or procuring the
commission of the offence;

Charities (Protection and Social Investment) BillPage 8

(c) an offence under Part 2 of the Serious Crime Act 2007
(encouraging or assisting) in relation to the offence.

(4) The Minister may amend this section by regulations to add or remove
an offence.”

(8) 5Section 179 (disqualification: pre-commencement events etc) is amended as
follows.

(9) In subsection (1), after “178(1)” insert “or section 178A or any amendment of
that section”.

(10) At the end add—

(7) 10Case H does not apply in relation to a finding of contempt which, if it
had been a conviction for which P was dealt with in the same way,
would be a spent conviction for the purposes of the Rehabilitation of
Offenders Act 1974.”

(11) Section 181 (waiver of disqualification) is amended as follows.

(12) 15After subsection (2) insert—

(2A) A waiver under subsection (2)—

(a) may relate to the whole of P’s disqualification or only to
disqualification under section 178(3);

(b) in relation to disqualification under section 178(3) may relate to
20a particular office or employment or to any office or
employment of a particular description.”

(13) In subsection (3) (presumption for waiver after 5 years) for “or E” substitute “,
E or I”.

(14) In section 183 (criminal consequences of acting while disqualified), in
25subsection (1)—

(a) after “for a charity” insert “or to hold an office or employment”;

(b) after “such a trustee” insert “or from holding that office or
employment”.

(15) Section 184 (civil consequences of acting while disqualified) is amended as
30follows.

(16) In subsections (1) and (2)(a)—

(a) after “for a charity” insert “or as officer or employee of a charity”, and

(b) after “such a trustee” insert “or from holding that office or
employment”.

(17) 35In subsection (2)(b) after “for the charity” insert “or holding the office or
employment”.

(18) Section 348 (regulations subject to affirmative procedure etc) is amended as
follows.

(19) In subsection (1), after paragraph (b) insert—

(ba) 40regulations under section 178A(4) (offences specified for
automatic disqualification of charity trustees);”.

(20) In subsection (2) after “(1)(a)” insert “, (ba)”.

Charities (Protection and Social Investment) BillPage 9

(21) In subsection (4) after “regulations under—” insert—

(za) section 178A(4), if the regulations add an offence,”.

10 Power to disqualify from being a trustee

(1) The Charities Act 2011 is amended as follows.

(2) 5After section 181 insert—

181A Disqualification orders

(1) The Commission may by order disqualify a person from being a charity
trustee or trustee for a charity.

(2) The order may disqualify a person—

(a) 10in relation to all charities, or

(b) in relation to such charities or classes of charity as may be
specified or described in the order.

(3) While a person is disqualified by virtue of an order under this section
in relation to a charity, the person is also disqualified, subject to
15subsection (5), from holding an office or employment in the charity
with senior management functions.

(4) A function of an office or employment held by a person “(A)” is a senior
management function if—

(a) A is not responsible for it to another officer or employee (other
20than a charity trustee or trustee for the charity), or

(b) it involves control over money and the only officer or employee
(other than a charity trustee or trustee for the charity) to whom
A is responsible for it is a person with senior management
functions other than ones involving control over money.

(5) 25An order under this section may provide for subsection (3) not to
apply—

(a) generally, or

(b) in relation to a particular office or employment or to any office
or employment of a particular description.

(6) 30The Commission may make an order disqualifying a person under this
section only if it is satisfied that—

(a) one or more of the conditions listed in subsection (7) are met in
relation to the person,

(b) the person is unfit to be a charity trustee or trustee for a charity
35(either generally or in relation to the charities or classes of
charity specified or described in the order), and

(c) making the order is desirable in the public interest in order to
protect public trust and confidence in charities generally or in
the charities or classes of charity specified or described in the
40order.

(7) These are the conditions—

A that the person has been cautioned for a disqualifying offence
against a charity or involving the administration of a charity.

Charities (Protection and Social Investment) BillPage 10

B

that—

(a)

under the law of a country or territory outside the United
Kingdom the person has been convicted in respect of an
5offence against a charity or involving the administration
of a charity, and

(b)

the act which constituted the offence would have
constituted a disqualifying offence if it had been done in
any part of the United Kingdom.


10
C that the person has been found by Her Majesty’s Revenue and
Customs not to be a fit and proper person to be a manager of a
body or trust, for the purposes of paragraph 4 of Schedule 6 to
the Finance Act 2010 (definition of charity for tax purposes), and
15the finding has not been overturned.
D

that the person was a trustee, charity trustee, officer, agent or
employee of a charity at a time when there was misconduct or
mismanagement in the administration of the charity, and—

(a)

20the person was responsible for the misconduct or
mismanagement,

(b)

the person knew of the misconduct or mismanagement
and failed to take any reasonable step to oppose it, or

(c)

the person’s conduct contributed to or facilitated the
25misconduct or mismanagement.


E

that the person was an officer or employee of a body corporate at
a time when the body was a trustee or charity trustee for a
30charity and when there was misconduct or mismanagement by
it in the administration of the charity, and—

(a)

the person was responsible for the misconduct or
mismanagement,

(b)

the person knew of the misconduct or mismanagement
35and failed to take any reasonable step to oppose it, or

(c)

the person’s conduct contributed to or facilitated the
misconduct or mismanagement.


F that any other past or continuing conduct by the person,
40whether or not in relation to a charity, is damaging or likely to
be damaging to public trust and confidence in charities
generally or in the charities or classes of charity specified or
described in the order.

(8) The Minister may amend this section by regulations to add or remove
45a condition.

(9) In this section “disqualifying offence” means an offence within Case A
in section 178(1).

(10) Conditions A and B apply whether the caution or conviction occurred
before or after the commencement of this section.

(11) 50Condition B does not apply in relation to a conviction which is spent
under the law of the country or territory concerned.

(12) For the purposes of condition B—

Charities (Protection and Social Investment) BillPage 11

(a) an act punishable under the law of a country or territory outside
the United Kingdom constitutes an offence under that law,
however it is described in that law, and

(b) “charity” means an institution that is a charity under the law of
5any part of the United Kingdom or that is established under the
law of another country or territory principally for charitable,
benevolent or philanthropic purposes.

181B Duration of disqualification, and suspension pending
disqualification

(1) 10An order under section 181A must specify the period for which the
person is disqualified.

(2) The period—

(a) must be not more than 15 years beginning with the day on
which the order takes effect, and

(b) 15must be proportionate, having regard in particular to the time
when a conviction becomes spent, and to circumstances in
which the Commission may or must grant a waiver under
section 181 where a person is disqualified under section 178.

(3) An order takes effect—

(a) 20at the end of the time specified by Tribunal Procedure Rules for
starting proceedings for an appeal against the order, if no
proceedings are started within that time, or

(b) (subject to the decision on the appeal) when any proceedings
started within that time are withdrawn or finally determined.

(4) 25The Commission may by order suspend a person from being a charity
trustee or trustee for a charity if it has given notice under section
181C(1)(a) of its proposal to make an order under section 181A in
respect of the person.

(5) The Commission may not make an order under subsection (4) so as to
30suspend a person for a period of more than 12 months, but at any time
before the expiry of an order the Commission may extend or further
extend the suspension by a further order under that subsection,
provided that—

(a) the order does not extend the suspension for a period of more
35than 12 months, and

(b) the total period of suspension is not more than 2 years.

(6) An order under subsection (4) ceases to have effect—

(a) if the Commission notifies the person that it will not proceed
with its proposal, on the notification being given;

(b) 40if the Commission makes the order under section 181A, on the
order taking effect;

or, if earlier, at the end of the period specified in accordance with
subsection (5).

(7) The Commission must review any order under subsection (4), at such
45intervals as it thinks fit.

(8) If on a review it appears to the Commission that it would be
appropriate to discharge an order under subsection (4) in whole or in

Charities (Protection and Social Investment) BillPage 12

part, the Commission must do so (whether subject to any savings or
other transitional provisions or not).

(9) An order under subsection (4) made in the case of any person (“P”) may
make provision, as respects the period of P’s suspension, for matters
5arising out of it, and in particular—

(a) for enabling any person to execute any instrument in P’s name
or otherwise act for P, and

(b) in the case of a charity trustee, for adjusting any rules governing
the proceedings of the charity trustees to take account of the
10reduction in the number capable of acting.

This does not affect the generality of section 337(1) and (2).

(10) While an order under subsection (4) is in force suspending a person
from being a charity trustee or trustee for a charity, the person must not
take up any appointment as a charity trustee or trustee for any other
15charity without the written approval of the Commission.

181C Disqualification orders: procedure

(1) Before making an order in respect of a person under section 181A
without the person’s consent the Commission must—

(a) give the person not less than one month’s notice of its
20proposals, and

(b) invite representations to be made to it within a period specified
in the notice.

(2) Before making an order under section 181A in respect of a person who
the Commission knows or believes to be a charity trustee or trustee for
25a charity, the Commission must also—

(a) give notice of its proposals to each of the charity trustees of the
charity in question;

(b) comply with the publicity requirement, unless the Commission
is satisfied that for any reason compliance with the requirement
30is unnecessary.

(3) The publicity requirement is that the Commission must give public
notice of its proposals, inviting representations to be made to it within
a period specified in the notice.

(4) The time when any such notice is given is to be decided by the
35Commission.

(5) Any notice of any proposals which is to be given under this section is
to contain such particulars of the proposals, or such directions for
obtaining information about them, as the Commission thinks sufficient
and appropriate.

(6) 40Where the Commission gives notice of any proposals under this
section—

(a) it must take into account any representations made to it within
the period specified in the notice, and

(b) it may (without further notice) proceed with the proposals
45either without modifications or with such modifications as it
thinks desirable;

Charities (Protection and Social Investment) BillPage 13

but a notice under subsection (2)(a) need not specify a period for the
purposes of paragraph (a) if the charity came to the Commission’s
knowledge or belief after the expiry of the period specified for the
purposes of subsection (1)(b).

(7) 5A notice under subsection (1) or (2)(a)

(a) may be given by post, and

(b) if given by post, may be addressed to the recipient’s last known
address in the United Kingdom.

(8) A notice under subsection (2)(b) is to be given in such manner as the
10Commission thinks sufficient and appropriate.

(9) Where the Commission makes an order under section 181A in respect
of a person it knows or believes to be a charity trustee or trustee for a
charity it must (as well as serving it on that person) send a copy of the
order and a statement of the Commission’s reasons for making it—

(a) 15to the charity in question (if a body corporate), or

(b) (if not) to each of the charity trustees of the charity in question.

(10) Nothing in this section requires the Commission to give notice, or send
a document, to a person who cannot be found or has no known address
in the United Kingdom.

(11) 20Any documents required to be sent to a person under this section may
be sent to, or otherwise served on, the person in the same way as an
order made by the Commission under this Act could be served on the
person in accordance with section 339.

181D Disqualification orders: variation and revocation

25A person in respect of whom an order under section 181A is in force
may at any time apply to the Commission for an order varying or
discharging that order.”

(3) In section 183 (criminal consequences of acting while disqualified)—

(a) in subsection (1), after “section 178” insert “or an order under section
30181A”;

(b) in subsection (2)(b), after “G” insert “in section 178”.

(4) In section 184 (civil consequences of acting while disqualified)—

(a) in subsection (1), after “section 178” insert “or an order under section
181A”;

(b) 35in subsection (2)(a), after “section 178” insert “or an order under section
181A.”

(5) Section 348 (regulations subject to affirmative procedure etc) is amended as
follows.

(6) In subsection (1), before paragraph (c) insert—

(ba) 40regulations under section 181A(8) (conditions for
disqualification by order);”.

(7) In subsection (2) before “or (c)” insert “, (bb)”.

(8) In subsection (4) before paragraph (a) insert—

(zb) section 181A(8), if the regulations add a condition,”.

Charities (Protection and Social Investment) BillPage 14

(9) In Schedule 6 (appeals and applications to tribunal), after the entry relating to
a decision of the Commission under section 181(2) to waive, or not waive, a
person’s disqualification insert—

“Order made by the
Commission under
section 181A.
The persons are the person
who is the subject of the
order.

5Power to—

(a)

quash the order in whole or in part
and (if appropriate) remit the
matter to the Commission;

(b)

substitute for all or part of the
10order any other order which could
have been made by the
Commission;

(c)

add to the order anything which
could have been contained in an
15order made by the Commission.




Order made by the
Commission under
section 181B(4).
The persons are the person
who is the subject of the
order.

20Power to—

(a)

quash the order in whole or in part
and (if appropriate) remit the
matter to the Commission;

(b)

substitute for all or part of the
25order any other order which could
have been made by the
Commission;

(c)

add to the order anything which
could have been contained in an
30order made by the Commission.




Decision of the
Commission— to discharge
an order
following a
review under
section
181B(7), or not to
discharge an
order
following
such a review.
The persons are— the person who is
the subject of the
order, the charity
trustees of the
charity to which
the order relates, (if a body
corporate) the
charity itself, and any other person
who is or may be
affected by the
order.

35Power to—

(a)

quash the decision and (if
appropriate) remit the matter to
the Commission;

(b)

make the discharge of the order
40subject to savings or other
transitional provisions;

(c)

remove any savings or other
transitional provisions to which
the discharge of the order was
45subject;

(d)

discharge the order in whole or in
part (whether subject to any
savings or other transitional
provisions or not).

Decision of the
Commission under
section 181D not to
revoke or vary an order
under section 181A.
The persons are the person
who is the subject of the
order.
50

Power to—

(a)

quash the decision and (if
appropriate) remit the matter to
the Commission;

(b)

55substitute for the decision any
other decision of a kind which
could have been made by the
Commission.”



60


11 Records of disqualification and removal

(1) 65Section 182 of the Charities Act 2011 (records of persons removed from office)
is amended as follows.

(2) In subsection (1)—

(a) for “181” substitute “181A”;

(b) after “a register of” insert, “the following.”

(3) 70The words in subsection (1) from “all persons” to the end become subsection
(1A).

(4) At the beginning of that subsection insert—

(1A) The register must include”.

Charities (Protection and Social Investment) BillPage 15

(5) After subsection (1A) insert—

(1B) The register must include all persons who have been disqualified by an
order of the Commission under section 181A.

(1C) The register must include all persons who have been removed from
5office by an order of the Commission under section 79A (removal of
disqualified trustee).”

12 Participation in corporate decisions while disqualified

In the Charities Act 2011, after section 184 insert—

184A Sections 183 and 184: participation in corporate decisions

(1) 10For the purposes of sections 183 and 184, a person who is not a charity
trustee or trustee for a charity is treated as acting as one if that person—

(a) is an officer of a body corporate which is a charity trustee or
trustee for a charity, and

(b) takes part in that capacity in any decision relating to the
15administration of the charity.

(2) In subsection (1) “officer” includes any of the persons having general
control and management of the administration of the body.”

13 Fund-raising

(1) Section 59 of the Charities Act 1992 (prohibition on certain fund-raising
20without agreement in prescribed form), is amended as follows.

(2) In subsection (6) for “such requirements” substitute “the requirement in
subsection (7) and such other requirements (including any requirements
supplementing subsections (7) and (8))”.

(3) After that subsection insert—

(7) 25The requirement in this subsection is that the agreement must specify
all of the following—

(a) any voluntary scheme for regulating fund-raising, or any
voluntary standard of fund-raising, that the professional fund-
raiser or commercial participator undertakes to be bound by for
30the purposes of the agreement;

(b) how the professional fund-raiser or commercial participator is
to protect vulnerable people and other members of the public
from behaviour within subsection (8) in the course of, or in
connection with, the activities to which the agreement relates;

(c) 35arrangements enabling the charitable institution to monitor
compliance with subsection (1) or (2) by reference to the
agreement.

(8) The behaviour mentioned in subsection (7)(b) is—

(a) unreasonable intrusion on a person’s privacy;

(b) 40unreasonably persistent approaches for the purpose of
soliciting or otherwise procuring money or other property;

(c) placing undue pressure on a person to give money or other
property.”

Charities (Protection and Social Investment) BillPage 16

(4) In the Charities Act 2011, after section 162 insert—

162A Annual reports: fund-raising standards information

(1) If section 144(2) applies to a financial year of a charity, the annual report
in respect of that year must include a statement of each of the following
5for that year—

(a) the approach taken by the charity to activities by the charity or
by any person on behalf of the charity for the purpose of fund-
raising, and in particular whether a professional fund-raiser or
commercial participator carried on any of those activities;

(b) 10whether the charity or any person acting on behalf of the charity
was subject to an undertaking to be bound by any voluntary
scheme for regulating fund-raising, or any voluntary standard
of fund-raising, in respect of activities on behalf of the charity,
and, if so, what scheme or standard;

(c) 15any failure to comply with a scheme or standard mentioned
under paragraph (b);

(d) whether the charity monitored activities carried on by any
person on behalf of the charity for the purpose of fund-raising,
and, if so, how it did so;

(e) 20the number of complaints received by the charity or a person
acting on its behalf about activities by the charity or by a person
on behalf of the charity for the purpose of fund-raising;

(f) what the charity has done to protect vulnerable people and
other members of the public from behaviour within subsection
25(2) in the course of, or in connection with, such activities.

(2) The behaviour within this subsection is—

(a) unreasonable intrusion on a person’s privacy;

(b) unreasonably persistent approaches for the purpose of
soliciting or otherwise procuring money or other property on
30behalf of the charity;

(c) placing undue pressure on a person to give money or other
property.

(3) In this section—

(a) “commercial participator” and “professional fund-raiser” have
35the meaning given by section 58 of the Charities Act 1992
(control of fund-raising: interpretation));

(b) “fund-raising” means soliciting or otherwise procuring money
or other property for charitable purposes.

(4) Section 58(6) and (7) of the Charities Act 1992 (references to soliciting
40money etc) apply for the purposes of this section as they apply for the
purposes of Part 2 of that Act.”

14 Reserve powers to control fund-raising

(1) The Charities Act 1992 is amended as follows.

(2) In Part 2, after section 64A (reserve power to control fund-raising by charitable

Charities (Protection and Social Investment) BillPage 17

institutions) insert—

64B Reserve power in relation to fund-raising regulators

(1) Regulations under section 64A may, in particular, impose on charitable
institutions requirements to do any of the following—

(a) 5to comply with requirements imposed by a regulator;

(b) to have regard to guidance issued by a regulator;

(c) to be registered with a regulator for the purpose of its regulation
of charity fund-raising.

(2) “Regulator” means a body specified in the regulations as a regulator for
10the purposes of this section.

(3) A body may be specified as a regulator for the purposes of this section
only if the regulation of charity fund-raising appears to the Minister to
be a principal function of the body.

(4) A body maintained out of money provided by Parliament may not be
15specified as a regulator (and this section does not confer power by
regulations to establish a body to act as regulator).”

(3) In Part 2, after section 64B insert—