Charities Bill [HL]

Session 2010 - 12
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Other Bills before Parliament

Charities Bill [HL]

Charities Bill [HL]
Part 4 — Registration and names of charities
15

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Claims and objections to registration
(1)
A person who is or may be affected by the registration of an institution as a
charity may, on the ground that it is not a charity—
(a)
object to its being entered by the Commission in the register, or
(b)
apply to the Commission for it to be removed from the register.
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(2)
Provision may be made by regulations made by the Minister as to the manner
in which any such objection or application is to be made, prosecuted or dealt
with.
(3)
Subsection (4) applies if there is an appeal to the Tribunal against any decision
of the Commission—
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(a)
to enter an institution in the register, or
(b)
not to remove an institution from the register.
(4)
Until the Commission is satisfied whether the decision of the Commission is or
is not to stand, the entry in the register—
(a)
is to be maintained, but
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(b)
is in suspense and must be marked to indicate that it is in suspense.
(5)
Any question affecting the registration or removal from the register of an
institution—
(a)
may be considered afresh by the Commission, even though it has been
determined by a decision on appeal under Chapter 2 of Part 17 (appeals
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and applications to Tribunal), and
(b)
is not concluded by that decision, if it appears to the Commission that—
(i)
there has been a change of circumstances, or
(ii)
the decision is inconsistent with a later judicial decision.
Effect of registration and right to inspect register
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Effect of registration
(1)
An institution is, for all purposes other than rectification of the register,
conclusively presumed to be or to have been a charity at any time when it is or
was on the register.
(2)
For the purposes of subsection (1) an institution is to be treated as not being on
30
the register during any period when the entry relating to it is in suspense under
section 36(4).
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Right to inspect register
(1)
The register (including the entries cancelled when institutions are removed
from the register) must be open to public inspection at all reasonable times.
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(2)
If any information contained in the register is not in documentary form,
subsection (1) is to be read as requiring the information to be available for
public inspection in legible form at all reasonable times.
(3)
If the Commission so determines, subsection (1) does not apply to any
particular information contained in the register that is specified in the
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determination.

Charities Bill [HL]
Part 4 — Registration and names of charities
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(4)
Copies (or particulars) of the trusts of any registered charity as supplied to the
Commission under section 35 (duties of trustees in connection with
registration) must, so long as the charity remains on the register—
(a)
be kept by the Commission, and
(b)
be open to public inspection at all reasonable times.
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(5)
If a copy of a document relating to a registered charity—
(a)
is not required to be supplied to the Commission as the result of section
35(4), but
(b)
is in the Commission’s possession,

a copy of the document must be open to inspection under subsection (4) as if
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supplied to the Commission under section 35.
Disclosure of registered charity status
39
Statement required to be made in official publications etc.
(1)
This section applies to a registered charity if its gross income in its last financial
year exceeded £10,000.
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(2)
If this section applies to a registered charity, the fact that it is a registered
charity must be stated in legible characters—
(a)
in all notices, advertisements and other documents issued by or on
behalf of the charity and soliciting money or other property for the
benefit of the charity,
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(b)
in all bills of exchange, promissory notes, endorsements, cheques and
orders for money or goods purporting to be signed on behalf of the
charity, and
(c)
in all bills rendered by it and in all its invoices, receipts and letters of
credit.
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(3)
The statement required by subsection (2) must be in English, except that, in the
case of a document which is otherwise wholly in Welsh, the statement may be
in Welsh if it consists of or includes “elusen cofrestredig” (the Welsh equivalent
of “registered charity”).
(4)
Subsection (2)(a) has effect—
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(a)
whether the solicitation is express or implied, and
(b)
whether or not the money or other property is to be given for any
consideration.
40
Power to alter sum specified in s.39(1)
The Minister may by order amend section 39(1) by substituting a different sum
35
for the sum for the time being specified there.
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Offences
(1)
It is an offence for a person, in the case of a registered charity to which section
39 applies, to issue or authorise the issue of any document falling within
section 39(2)(a) or (c) which does not contain the statement required by section
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39(2).

Charities Bill [HL]
Part 4 — Registration and names of charities
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(2)
It is an offence for a person, in the case of a registered charity to which section
39 applies, to sign any document falling within section 39(2)(b) which does not
contain the statement required by section 39(2).
(3)
A person guilty of an offence under subsection (1) or (2) is liable on summary
conviction to a fine not exceeding level 3 on the standard scale.
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Power to require charity’s name to be changed
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Power to require name to be changed
(1)
If this subsection applies to a charity, the Commission may give a direction
requiring the name of the charity to be changed, within such period as is
specified in the direction, to such other name as the charity trustees may
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determine with the approval of the Commission.
(2)
Subsection (1) applies to a charity if—
(a)
it is a registered charity and its name (“the registered name”)—
(i)
is the same as, or
(ii)
is in the opinion of the Commission too like,
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the name, at the time when the registered name was entered in the
register in respect of the charity, of any other charity (whether
registered or not),
(b)
the name of the charity is in the opinion of the Commission likely to
mislead the public as to the true nature of—
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(i)
the purposes of the charity as set out in its trusts, or
(ii)
the activities which the charity carries on under its trusts in
pursuit of those purposes,
(c)
the name of the charity includes any word or expression for the time
being specified in regulations made by the Minister and the inclusion
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in its name of that word or expression is in the opinion of the
Commission likely to mislead the public in any respect as to the status
of the charity,
(d)
the name of the charity is in the opinion of the Commission likely to
give the impression that the charity is connected in some way with Her
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Majesty’s Government or any local authority, or with any other body of
persons or any individual, when it is not so connected, or
(e)
the name of the charity is in the opinion of the Commission offensive.
(3)
Any direction given by virtue of subsection (2)(a) must be given within 12
months of the time when the registered name was entered in the register in
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respect of the charity.
(4)
In subsection (2) any reference to the name of a charity is, in relation to a
registered charity, a reference to the name by which it is registered.
(5)
Any direction given under this section with respect to a charity must be given
to the charity trustees.
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43
Duty of charity trustees on receiving direction under s.42
(1)
On receiving a direction under section 42 the charity trustees must give effect
to it regardless of anything in the trusts of the charity.

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Part 5 — Information powers
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(2)
If the name of any charity is changed by virtue of section 42, the charity trustees
must without delay notify the Commission of—
(a)
the charity’s new name, and
(b)
the date on which the change occurred.
(3)
Subsection (2) does not affect section 35(3) (duty of charity trustees to notify
5
changes in registered particulars).
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Change of name not to affect existing rights and obligations etc.
A change of name by a charity by virtue of section 42 does not affect any rights
or obligations of the charity; and any legal proceedings that might have been
continued or commenced by or against it in its former name may be continued
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or commenced by or against it in its new name.
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Change of name where charity is a company
(1)
In relation to a charitable company, any reference in section 42 or 43 to the
charity trustees of a charity is to be read as a reference to the directors of the
company.
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(2)
Subsections (3) to (5) apply if a direction is given under section 42 with respect
to a charitable company.
(3)
The direction is to be treated as requiring the name of the company to be
changed by resolution of the directors of the company.
(4)
Where a resolution of the directors is passed in accordance with subsection (3),
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the company must give notice of the change to the registrar of companies.
(5)
Where the name of the company is changed in compliance with the direction,
the registrar of companies must—
(a)
if satisfied that the new name complies with the requirements of Part 5
of the Companies Act 2006, enter the new name on the register of
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companies in place of the former name, and
(b)
issue a certificate of incorporation altered to meet the circumstances of
the case;

and the change of name has effect from the date on which the altered certificate
is issued.
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Part 5
Information powers
Inquiries instituted by Commission
46
General power to institute inquiries
(1)
The Commission may from time to time institute inquiries with regard to
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charities or a particular charity or class of charities, either generally or for
particular purposes.
(2)
But no such inquiry is to extend to any exempt charity except where this has
been requested by its principal regulator.
(3)
The Commission may—
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Charities Bill [HL]
Part 5 — Information powers
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(a)
conduct such an inquiry itself, or
(b)
appoint a person to conduct it and make a report to the Commission.
(4)
This section and sections 47 to 49 (obtaining evidence and search warrants)
have effect in relation to a body entered in the Scottish Charity Register which
is managed or controlled wholly or mainly in or from England or Wales as they
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have effect in relation to a charity.
47
Obtaining evidence etc. for purposes of inquiry
(1)
In this section “inquiry” means an inquiry under section 46.
(2)
For the purposes of an inquiry, the Commission, or a person appointed by the
Commission to conduct it, may direct any person—
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(a)
if a matter in question at the inquiry is one on which the person has or
can reasonably obtain information—
(i)
to provide accounts and statements in writing with respect to
the matter, or to return answers in writing to any questions or
inquiries addressed to the person on the matter, and
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(ii)
to verify any such accounts, statements or answers by statutory
declaration;
(b)
to provide copies of documents which are in the custody or under the
control of the person and which relate to any matter in question at the
inquiry, and to verify any such copies by statutory declaration;
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(c)
to attend at a specified time and place and give evidence or produce
any such documents.

But this is subject to the provisions of this section.
(3)
For the purposes of an inquiry—
(a)
evidence may be taken on oath, and the person conducting the inquiry
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may for that purpose administer oaths, or
(b)
the person conducting the inquiry may instead of administering an
oath require the person examined to make and subscribe a declaration
of the truth of the matters about which that person is examined.
(4)
The Commission may pay to any person attending to give evidence or produce
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documents for the purpose of an inquiry the necessary expenses of doing so.
(5)
A direction under subsection (2)(c) may not require a person to go more than
10 miles from the person’s place of residence unless those expenses are paid or
tendered to the person.
48
Power to obtain search warrant for purposes of inquiry
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(1)
A justice of the peace may issue a warrant under this section if satisfied, on
information given on oath by a member of the Commission’s staff, that there
are reasonable grounds for believing that each of the conditions in subsection
(2) is satisfied.
(2)
The conditions are—
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(a)
that an inquiry has been instituted under section 46,
(b)
that there is on the premises to be specified in the warrant any
document or information relevant to that inquiry which the
Commission could require to be produced or provided under section
52(1), and
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Charities Bill [HL]
Part 5 — Information powers
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(c)
that, if the Commission were to make an order requiring the document
or information to be so produced or provided—
(i)
the order would not be complied with, or
(ii)
the document or information would be removed, tampered
with, concealed or destroyed.
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(3)
A warrant under this section is a warrant authorising the member of the
Commission’s staff who is named in it (“P”)—
(a)
to enter and search the premises specified in it;
(b)
to take such other persons with P as the Commission considers are
needed to assist P in doing anything that P is authorised to do under the
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warrant;
(c)
to take possession of any documents which appear to fall within
subsection (2)(b), or to take any other steps which appear to be
necessary for preserving, or preventing interference with, any such
documents;
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(d)
to take possession of any computer disk or other electronic storage
device which appears to contain information falling within subsection
(2)(b), or information contained in a document so falling, or to take any
other steps which appear to be necessary for preserving, or preventing
interference with, any such information;
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(e)
to take copies of, or extracts from, any documents or information falling
within paragraph (c) or (d);
(f)
to require any person on the premises to provide an explanation of any
such document or information or to state where any such documents or
information may be found;
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(g)
to require any such person to give P such assistance as P may
reasonably require for the taking of copies or extracts as mentioned in
paragraph (e).
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Execution of search warrant
(1)
Entry and search under a warrant under section 48 must be at a reasonable
30
hour and within one month of the date of its issue.
(2)
The member of the Commission’s staff who is authorised under such a warrant
(“P”) must, if required to do so, produce—
(a)
the warrant, and
(b)
documentary evidence that P is a member of the Commission’s staff,
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for inspection by the occupier of the premises or anyone acting on the
occupier’s behalf.
(3)
P must make a written record of—
(a)
the date and time of P’s entry on the premises,
(b)
the number of persons (if any) who accompanied P on to the premises
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and the names of any such persons,
(c)
the period for which P (and any such persons) remained on the
premises,
(d)
what P (and any such persons) did while on the premises, and
(e)
any document or device of which P took possession while there.
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(4)
If required to do so, P must give a copy of the record to the occupier of the
premises or someone acting on the occupier’s behalf.

Charities Bill [HL]
Part 5 — Information powers
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(5)
Unless it is not reasonably practicable to do so, P must before leaving the
premises comply with—
(a)
the requirements of subsection (3), and
(b)
any requirement made under subsection (4) before P leaves the
premises.
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(6)
Where possession of any document or device is taken under section 48—
(a)
the document may be retained for so long as the Commission considers
that it is necessary to retain it (rather than a copy of it) for the purposes
of the relevant inquiry under section 46, or
(b)
the device may be retained for so long as the Commission considers
10
that it is necessary to retain it for the purposes of that inquiry,

as the case may be.
(7)
Once it appears to the Commission that the retention of any document or
device has ceased to be so necessary, it must arrange for the document or
device to be returned as soon as is reasonably practicable—
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(a)
to the person from whose possession it was taken, or
(b)
to any of the charity trustees of the charity to which it belonged or
related.

For the purposes of this subsection as it has effect by virtue of section 46(4), the
reference in paragraph (b) to the charity trustees of the charity is to be read as
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a reference to the persons having the general control and management of the
administration of the body entered in the Scottish Charity Register.
(8)
It is an offence for a person intentionally to obstruct the exercise of any rights
conferred by a warrant under section 48.
(9)
A person guilty of an offence under subsection (8) is liable on summary
25
conviction—
(a)
to imprisonment for a term not exceeding 51 weeks, or
(b)
to a fine not exceeding level 5 on the standard scale,

or to both.
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Publication of results of inquiries
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(1)
This section applies where an inquiry has been held under section 46.
(2)
The Commission may—
(a)
cause the report of the person conducting the inquiry, or such other
statement of the results of the inquiry as the Commission thinks fit, to
be printed and published, or
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(b)
publish any such report or statement in some other way which is
calculated in the Commission’s opinion to bring it to the attention of
persons who may wish to make representations to the Commission
about the action to be taken.
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Contributions by local authorities to inquiries into local charities
40
(1)
A council may contribute to the expenses of the Commission in connection
with inquiries under section 46 into local charities in the council’s area.
(2)
In subsection (1) “council” means—
(a)
a district council;