Charities Bill [HL]

Session 2010 - 12
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Charities Bill [HL]

Charities Bill [HL]
Schedule 1 — The Charity Commission
170

Schedules
Schedule 1
Section 13

The Charity Commission
Membership
1     (1)
The Commission is to consist of—
5
(a)
a person appointed by the Minister to chair the Commission, and
(b)
at least 4, but not more than 8, other members appointed by the
Minister.
      (2)
The Minister must exercise the power in sub-paragraph (1) so as to secure
that—
10
(a)
the knowledge and experience of the members of the Commission
(taken together) includes knowledge and experience of the matters
mentioned in sub-paragraph (3),
(b)
at least two members have a 7 year general qualification within the
meaning of section 71 of the Courts and Legal Services Act 1990, and
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(c)
at least one member—
(i)
knows about conditions in Wales, and
(ii)
has been appointed following consultation with the Welsh
Ministers.
      (3)
The matters are—
20
(a)
the law relating to charities,
(b)
charity accounts and the financing of charities, and
(c)
the operation and regulation of charities of different sizes and
descriptions.
      (4)
In sub-paragraph (2)(c) “member” does not include the person appointed to
25
chair the Commission.
Terms of appointment and remuneration
2
The members of the Commission hold and vacate office as such in
accordance with the terms of their respective appointments.
3     (1)
An appointment of a person to hold office as a member of the Commission
30
must be for a term of no more than 3 years.
      (2)
A person holding office as a member of the Commission—
(a)
may resign that office by giving notice in writing to the Minister, and
(b)
may be removed from office by the Minister on the ground of
incapacity or misbehaviour.
35

Charities Bill [HL]
Schedule 1 — The Charity Commission
171

      (3)
Before removing a member of the Commission the Minister must consult—
(a)
the Commission, and
(b)
if the member was appointed following consultation with the Welsh
Ministers, the Welsh Ministers.
      (4)
No person may hold office as a member of the Commission for more than 10
5
years in total.
      (5)
For the purposes of sub-paragraph (4), time spent holding office as a Charity
Commissioner for England and Wales counts as time spent holding office as
a member of the Commission.
4     (1)
The Commission must pay to its members such remuneration, and such
10
other allowances, as may be determined by the Minister.
      (2)
The Commission must, if required to do so by the Minister—
(a)
pay such pension, allowances or gratuities as may be determined by
the Minister to or in respect of a person who is or has been a member
of the Commission, or
15
(b)
make such payments as may be so determined towards provision for
the payment of a pension, allowances or gratuities to or in respect of
such a person.
      (3)
Sub-paragraph (4) applies if the Minister determines that there are special
circumstances which make it right for a person ceasing to hold office as a
20
member of the Commission to receive compensation.
      (4)
The Commission must pay to the person a sum by way of compensation of
such amount as may be determined by the Minister.
Staff
5     (1)
The Commission—
25
(a)
must appoint a chief executive, and
(b)
may appoint such other staff as it may determine.
      (2)
The terms and conditions of service of persons appointed under sub-
paragraph (1) are to be such as the Commission may determine with the
approval of the Minister for the Civil Service.
30
Committees
6     (1)
The Commission may establish committees and any committee of the
Commission may establish sub-committees.
      (2)
The members of a committee of the Commission may include persons who
are not members of the Commission (and the members of a sub-committee
35
may include persons who are not members of the committee or of the
Commission).
Procedure etc.
7     (1)
The Commission may regulate its own procedure (including quorum).
      (2)
The validity of anything done by the Commission is not affected by—
40
(a)
a vacancy among its members, or
(b)
a defect in the appointment of a member.

Charities Bill [HL]
Schedule 1 — The Charity Commission
172

Performance of functions
8
Anything authorised or required to be done by the Commission may be
done by—
(a)
any member or member of staff of the Commission who is
authorised for that purpose by the Commission, whether generally
5
or specially;
(b)
any committee of the Commission which has been so authorised.
Evidence
9
The Documentary Evidence Act 1868 has effect as if—
(a)
the Commission were mentioned in the first column of the Schedule
10
to that Act,
(b)
any member or member of staff of the Commission authorised to act
on behalf of the Commission were specified in the second column of
that Schedule in connection with the Commission, and
(c)
the regulations referred to in that Act included any document issued
15
by or under the authority of the Commission.
Execution of documents
10    (1)
A document is executed by the Commission by the fixing of its common seal
to the document.
      (2)
But the fixing of that seal to a document must be authenticated by the
20
signature of—
(a)
any member of the Commission, or
(b)
any member of its staff,

who is authorised for the purpose by the Commission.
      (3)
A document which is expressed (in whatever form of words) to be executed
25
by the Commission and is signed by—
(a)
any member of the Commission, or
(b)
any member of its staff,

who is authorised for the purpose by the Commission has the same effect as
if executed in accordance with sub-paragraphs (1) and (2).
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      (4)
A document executed by the Commission which makes it clear on its face
that it is intended to be a deed has effect, upon delivery, as a deed; and it is
to be presumed (unless a contrary intention is proved) to be delivered upon
its being executed.
      (5)
In favour of a purchaser a document is to be treated as having been duly
35
executed by the Commission if it purports to be signed on its behalf by—
(a)
any member of the Commission, or
(b)
any member of its staff;

and, if it makes it clear on its face that it is intended to be a deed, it is to be
treated as having been delivered upon its being executed.
40
      (6)
For the purposes of this paragraph—
“authorised” means authorised whether generally or specially, and
“purchaser”—

Charities Bill [HL]
Schedule 1 — The Charity Commission
173

(a)
means a purchaser in good faith for valuable consideration,
and
(b)
includes a lessee, mortgagee or other person who for
valuable consideration acquired an interest in property.
Annual report
5
11    (1)
As soon as practicable after the end of each financial year the Commission
must publish a report on—
(a)
the discharge of its functions,
(b)
the extent to which, in its opinion, its objectives (see section 14) have
been met,
10
(c)
the performance of its general duties (see section 16), and
(d)
the management of its affairs,

during that year.
      (2)
The Commission must lay a copy of each such report before Parliament.
      (3)
“Financial year” means the 12 months ending with 31 March in any year.
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Annual public meeting
12    (1)
The Commission must hold a public meeting (“the annual meeting”) for the
purpose of enabling a report under paragraph 11 to be considered.
      (2)
The annual meeting must be held within the period of 3 months beginning
with the day on which the report is published.
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      (3)
The Commission must organise the annual meeting so as to allow—
(a)
a general discussion of the contents of the report which is being
considered, and
(b)
a reasonable opportunity for those attending the meeting to put
questions to the Commission about matters to which the report
25
relates.
      (4)
But subject to sub-paragraph (3) the annual meeting is to be organised and
conducted in such a way as the Commission considers appropriate.
      (5)
The Commission must—
(a)
take such steps as are reasonable in the circumstances to ensure that
30
notice of the annual meeting is given to every registered charity, and
(b)
publish notice of the annual meeting in the way appearing to it to be
best calculated to bring it to the attention of members of the public.
      (6)
Each such notice must—
(a)
give details of the time and place at which the meeting is to be held,
35
(b)
set out the proposed agenda for the meeting,
(c)
indicate the proposed duration of the meeting, and
(d)
give details of the Commission’s arrangements for enabling persons
to attend.
      (7)
If the Commission proposes to alter any of the arrangements which have
40
been included in notices given or published under sub-paragraph (5) it
must—
(a)
give reasonable notice of the alteration, and

Charities Bill [HL]
Schedule 2 — The official custodian
174

(b)
publish the notice in the way appearing to it to be best calculated to
bring it to the attention of registered charities and members of the
public.
Schedule 2
Section 21

The official custodian
5
Status and official seal
1
The official custodian is a corporation sole whose official seal is to be
officially and judicially noticed.
Expenses
2
The expenses of the official custodian (except those reimbursed to, or
10
recovered by, the official custodian as trustee for any charity) are to be
defrayed by the Commission.
Performance of functions and liability for loss or misapplication of property
3
Anything which is required to or may be done by, to or before the official
custodian may be done by, to or before any member of the staff of the
15
Commission generally or specially authorised by it to act for the official
custodian during a vacancy in the official custodian’s office or otherwise.
4     (1)
The official custodian is not liable as trustee for any charity in respect of any
loss or of the misapplication of any property unless it is occasioned by or
through the wilful neglect or default of—
20
(a)
the official custodian, or
(b)
any person acting for the official custodian.
      (2)
But the Consolidated Fund is liable to make good to a charity any sums for
which the official custodian may be liable because of any such neglect or
default.
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Accounts
5
The official custodian must—
(a)
keep such books of account and such records in relation to them as
may be directed by the Treasury, and
(b)
prepare accounts, in such form, in such manner and at such times as
30
may be directed by the Treasury.
6
The Comptroller and Auditor General must—
(a)
examine, certify and report on the accounts so prepared, and
(b)
send a copy of the certified accounts and the report to the
Commission.
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7
The Commission must publish and lay before Parliament a copy of the
documents sent to it under paragraph 6(b).