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Charities Bill [HL]


Charities Bill [HL]
Schedule 4 — Appeals and applications to Charity Tribunal

102

 

(b)   

the reference in that paragraph to paragraphs 1 to 5 of this

Schedule included a reference to any other provision

relating to appeals to the Tribunal which is contained in

Chapter 1 of Part 3 of the Charities Act 2005.

Schedule 1D

5

Section 2A(4)

 

References to Charity Tribunal

References by Commission

1     (1)  

A question which—

(a)   

has arisen in connection with the exercise by the

Commission of any of its functions, and

10

(b)   

involves either the operation of charity law in any respect

or its application to a particular state of affairs,

           

may be referred to the Tribunal by the Commission if the

Commission considers it desirable to refer the question to the

Tribunal.

15

      (2)  

The Commission may make such a reference only with the consent

of the Attorney General.

      (3)  

The Commission shall be a party to proceedings before the

Tribunal on the reference.

      (4)  

The following shall be entitled to be parties to proceedings before

20

the Tribunal on the reference—

(a)   

the Attorney General, and

(b)   

with the Tribunal’s permission—

(i)   

the charity trustees of any charity which is likely to

be affected by the Tribunal’s decision on the

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reference,

(ii)   

any such charity which is a body corporate, and

(iii)   

any other person who is likely to be so affected.

References by Attorney General

2     (1)  

A question which involves either—

30

(a)   

the operation of charity law in any respect, or

(b)   

the application of charity law to a particular state of affairs,

           

may be referred to the Tribunal by the Attorney General if the

Attorney General considers it desirable to refer the question to the

Tribunal.

35

      (2)  

The Attorney General shall be a party to proceedings before the

Tribunal on the reference.

      (3)  

The following shall be entitled to be parties to proceedings before

the Tribunal on the reference—

(a)   

the Commission, and

40

(b)   

with the Tribunal’s permission—

 

 

Charities Bill [HL]
Schedule 4 — Appeals and applications to Charity Tribunal

103

 

(i)   

the charity trustees of any charity which is likely to

be affected by the Tribunal’s decision on the

reference,

(ii)   

any such charity which is a body corporate, and

(iii)   

any other person who is likely to be so affected.

5

Powers of Commission in relation to matters referred to Tribunal

3     (1)  

This paragraph applies where a question which involves the

application of charity law to a particular state of affairs has been

referred to the Tribunal under paragraph 1 or 2 above.

      (2)  

The Commission shall not take any steps in reliance on any view

10

as to the application of charity law to that state of affairs until—

(a)   

proceedings on the reference (including any proceedings

on appeal) have been concluded, and

(b)   

any period during which an appeal (or further appeal)

may ordinarily be made has ended.

15

      (3)  

Where—

(a)   

paragraphs (a) and (b) of sub-paragraph (2) above are

satisfied, and

(b)   

the question has been decided in proceedings on the

reference,

20

           

the Commission shall give effect to that decision when dealing

with the particular state of affairs to which the reference related.

Suspension of time limits while reference in progress

4     (1)  

Sub-paragraph (2) below applies if—

(a)   

paragraph 3(2) above prevents the Commission from

25

taking any steps which it would otherwise be permitted or

required to take, and

(b)   

the steps in question may be taken only during a period

specified in an enactment (“the specified period”).

      (2)  

The running of the specified period is suspended for the period

30

which—

(a)   

begins with the date on which the question is referred to

the Tribunal, and

(b)   

ends with the date on which paragraphs (a) and (b) of

paragraph 3(2) above are satisfied.

35

      (3)  

Nothing in this paragraph or section 74A of this Act prevents the

specified period being suspended concurrently by virtue of sub-

paragraph (2) above and that section.

Agreement for Commission to act while reference in progress

5     (1)  

Paragraph 3(2) above does not apply in relation to any steps taken

40

by the Commission with the agreement of—

(a)   

the persons who are parties to the proceedings on the

reference at the time when those steps are taken, and

 

 

Charities Bill [HL]
Schedule 4 — Appeals and applications to Charity Tribunal

104

 

(b)   

(if not within paragraph (a) above) the charity trustees of

any charity which—

(i)   

is likely to be directly affected by the taking of

those steps, and

(ii)   

is not a party to the proceedings at that time.

5

      (2)  

The Commission may take those steps despite the suspension in

accordance with paragraph 4(2) above of any period during which

it would otherwise be permitted or required to take them.

      (3)  

Paragraph 3(3) above does not require the Commission to give

effect to a decision as to the application of charity law to a

10

particular state of affairs to the extent that the decision is

inconsistent with any steps already taken by the Commission in

relation to that state of affairs in accordance with this paragraph.

Appeals and applications in respect of matters determined on references

6     (1)  

No appeal or application may be made to the Tribunal by a person

15

to whom sub-paragraph (2) below applies in respect of an order or

decision made, or direction given, by the Commission in

accordance with paragraph 3(3) above.

      (2)  

This sub-paragraph applies to a person who was at any stage a

party to the proceedings in which the question referred to the

20

Tribunal was decided.

      (3)  

Rules under section 2B(1) of this Act may include provision as to

who is to be treated for the purposes of sub-paragraph (2) above

as being (or not being) a party to the proceedings.

      (4)  

Any enactment (including one contained in this Act) which

25

provides for an appeal or application to be made to the Tribunal

has effect subject to sub-paragraph (1) above.

Interpretation

7     (1)  

In this Schedule—

“charity law” means—

30

(a)   

any enactment contained in, or made under, this Act

or the Charities Act 2005,

(b)   

any other enactment specified in regulations made by

the Secretary of State, and

(c)   

any rule of law which relates to charities, and

35

“enactment” includes an enactment comprised in

subordinate legislation (within the meaning of the

Interpretation Act 1978), and includes an enactment

whenever passed or made.

      (2)  

The exclusions contained in section 96(2) of this Act (ecclesiastical

40

corporations etc.) do not have effect for the purposes of this

Schedule.”

 

 

Charities Bill [HL]
Schedule 5 — Exempt charities: increased regulation under 1993 Act

105

 

Schedule 5

Section 12

 

Exempt charities: increased regulation under 1993 Act

Power to require charity’s name to be changed

1          

In section 6 of the 1993 Act (power of Commission to require charity’s name

to be changed) omit subsection (9) (exclusion of exempt charities).

5

Power to institute inquiries

2          

In section 8(1) of the 1993 Act (power of Commission to institute inquiries

with regard to charities but not in relation to any exempt charity) after “any

exempt charity” insert “except where this has been requested by its principal

regulator.”

10

Power to call for documents etc.

3          

In section 9 of the 1993 Act (power of Commission to call for documents and

search records) omit subsection (4) (exclusion of documents relating only to

exempt charities).

Concurrent jurisdiction of Commission with High Court

15

4     (1)  

Section 16 of the 1993 Act (concurrent jurisdiction of Commission with High

Court for certain purposes) is amended as follows.

      (2)  

In subsection (4)(c) (application for Commission to exercise powers may be

made by Attorney General except in case of exempt charity) omit “in the case

of a charity other than an exempt charity,”.

20

      (3)  

In subsection (5) (jurisdiction exercisable in case of charity which is not an

exempt charity and whose annual income does not exceed £500) omit

“which is not an exempt charity and”.

Further powers of Commission

5          

In section 17(7) of the 1993 Act (expenditure by charity on promoting

25

Parliamentary Bill needs consent of court or Commission except in case of

exempt charity) omit the words from “but this subsection” onwards.

Power to act for protection of charities

6          

In section 18 of the 1993 Act (power of Commission to act for protection of

charities) for subsection (16) substitute—

30

“(16)   

In this section—

(a)   

subsections (1) to (3) apply in relation to an exempt charity,

and

(b)   

subsections (4) to (6) apply in relation to such a charity at any

time after the Commission have instituted an inquiry under

35

section 8 with respect to it,

   

and the other provisions of this section apply accordingly.”

 

 

Charities Bill [HL]
Schedule 6 — Group Accounts

106

 

Power to give directions about dormant bank accounts

7          

In section 28 of the 1993 Act (power of Commission to give directions about

dormant bank accounts of charities), omit subsection (10) (exclusion of

accounts held by or on behalf of exempt charity).

Proceedings by persons other than Commission

5

8     (1)  

Section 33 of the 1993 Act (charity proceedings by persons other than

Commission) is amended as follows.

      (2)  

In subsection (2) (proceedings relating to a charity other than an exempt

charity must be authorised by the Commission) omit “(other than an exempt

charity)”.

10

      (3)  

In subsection (7) (participation by Attorney General in proceedings relating

to charity other than exempt charity) omit “(other than an exempt charity)”.

Power to order disqualified person to repay sums received from charity

9          

In section 73 of the 1993 Act (consequences of person acting as charity trustee

while disqualified), in subsection (4) (power of Commission to order

15

disqualified person to repay sums received from a charity other than an

exempt charity) omit “(other than an exempt charity)”.

Schedule 6

Section 30

 

Group Accounts

20

           

After Schedule 5 to the 1993 Act insert—

“Schedule 5A

Section 49A

 

Group Accounts

Interpretation

1     (1)  

This paragraph applies for the purposes of this Schedule.

25

      (2)  

A charity is a “parent charity” if—

(a)   

it is (or is to be treated as) a parent undertaking in relation

to one or more other undertakings in accordance with the

provisions of section 258 of, and Schedule 10A to, the

Companies Act 1985, and

30

(b)   

it is not a company.

      (3)  

Each undertaking in relation to which a parent charity is (or is to

be treated as) a parent undertaking in accordance with those

provisions is a “subsidiary undertaking” in relation to the parent

charity.

35

 

 

Charities Bill [HL]
Schedule 6 — Group Accounts

107

 

      (4)  

But sub-paragraph (3) does not have the result that any of the

following is a “subsidiary undertaking”—

(a)   

any special trusts of a charity,

(b)   

any institution which, by virtue of a direction under

section 96(5) of this Act, is to be treated as forming part of

5

a charity for the purposes of this Part of this Act, or

(c)   

any charity to which a direction under section 96(6) of this

Act applies for those purposes.

      (5)  

“The group”, in relation to a parent charity, means that charity and

its subsidiary undertaking or undertakings, and any reference to

10

the members of the group is to be construed accordingly.

      (6)  

For the purposes of—

(a)   

this paragraph, and

(b)   

the operation of the provisions mentioned in sub-

paragraph (2) above for the purposes of this paragraph,

15

           

“undertaking” has the meaning given by sub-paragraph (7) below.

      (7)  

For those purposes “undertaking” means—

(a)   

an undertaking as defined by section 259(1) of the

Companies Act 1985, or

(b)   

a charity which is not an undertaking as so defined.

20

Accounting records

2     (1)  

The charity trustees—

(a)   

of a parent charity, or

(b)   

of any charity which is a subsidiary undertaking,

           

must ensure that the accounting records kept in respect of the

25

charity under section 41(1) of this Act not only comply with the

requirements of that provision but also are such as to enable the

charity trustees of the parent charity to ensure that, where any

group accounts are prepared by them under paragraph 3(2), those

accounts comply with the relevant requirements.

30

      (2)  

If a parent charity has a subsidiary undertaking in relation to

which the requirements of section 41(1) of this Act do not apply,

the charity trustees of the parent charity must take reasonable

steps to secure that the undertaking keeps such accounting

records as to enable the trustees to ensure that, where any group

35

accounts are prepared by them under paragraph 3(2), those

accounts comply with the relevant requirements.

      (3)  

In this paragraph “the relevant requirements” means the

requirements of regulations under paragraph 3.

Preparation of group accounts

40

3     (1)  

This paragraph applies in relation to a financial year of a charity if

it is a parent charity at the end of that year.

      (2)  

The charity trustees of the parent charity must prepare group

accounts in respect of that year.

      (3)  

“Group accounts” means consolidated accounts—

45

 

 

Charities Bill [HL]
Schedule 6 — Group Accounts

108

 

(a)   

relating to the group, and

(b)   

complying with such requirements as to their form and

contents as may be prescribed by regulations made by the

Secretary of State.

      (4)  

Without prejudice to the generality of sub-paragraph (3),

5

regulations under that sub-paragraph may make provision—

(a)   

for any such accounts to be prepared in accordance with

such methods and principles as are specified or referred to

in the regulations;

(b)   

for dealing with cases where the financial years of the

10

members of the group do not all coincide;

(c)   

as to any information to be provided by way of notes to the

accounts.

      (5)  

Regulations under that sub-paragraph may also make provision—

(a)   

for determining the financial years of subsidiary

15

undertakings for the purposes of this Schedule;

(b)   

for imposing on the charity trustees of a parent charity

requirements with respect to securing that such financial

years coincide with that of the charity.

      (6)  

If the requirement in sub-paragraph (2) applies to the charity

20

trustees of a parent charity in relation to a financial year—

(a)   

that requirement so applies in addition to the requirement

in section 42(1) of this Act, and

(b)   

the option of preparing the documents mentioned in

section 42(3) of this Act is not available in relation to that

25

year (whatever the amount of the charity’s gross income

for that year).

      (7)  

Sub-paragraph (2) has effect subject to paragraph 4.

Exceptions relating to requirement to prepare group accounts

4     (1)  

The requirement in paragraph 3(2) does not apply to the charity

30

trustees of a parent charity in relation to a financial year if at the

end of that year it is itself a subsidiary undertaking in relation to

another charity.

      (2)  

The requirement in paragraph 3(2) does not apply to the charity

trustees of a parent charity in relation to a financial year if the

35

aggregate gross income of the group for that year does not exceed

such sum as is specified in regulations made by the Secretary of

State.

      (3)  

Regulations made by the Secretary of State may prescribe

circumstances in which a subsidiary undertaking may or (as the

40

case may be) must be excluded from group accounts required to

be prepared under paragraph 3(2) for a financial year.

      (4)  

Where, by virtue of such regulations, each of the subsidiary

undertakings which are members of a group is either permitted or

required to be excluded from any such group accounts for a

45

financial year, the requirement in paragraph 3(2) does not apply to

the charity trustees of the parent charity in relation to that year.

 

 

 
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