|
| |
|
(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. |
| |
| 5 |
| |
References to Charity Tribunal |
| |
| |
| |
(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 |
| |
| 15 |
(2) | The Commission may make such a reference only with the consent |
| |
| |
(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 |
| 25 |
| |
(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 |
| |
| 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— |
| |
| 40 |
(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 |
| |
| |
(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 |
| |
(a) | paragraphs (a) and (b) of sub-paragraph (2) above are |
| |
| |
(b) | the question has been decided in proceedings on the |
| |
| 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 |
| |
| |
(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 |
| |
(a) | begins with the date on which the question is referred to |
| |
| |
(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 |
| |
|
| |
|
| |
|
(b) | (if not within paragraph (a) above) the charity trustees of |
| |
| |
(i) | is likely to be directly affected by the taking of |
| |
| |
(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 |
| |
(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. |
| |
| |
| |
| 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 |
| |
| |
(2) | The exclusions contained in section 96(2) of this Act (ecclesiastical |
| 40 |
corporations etc.) do not have effect for the purposes of this |
| |
| |
|
| |
|
| |
|
| |
| |
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 |
| |
| 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 |
| |
| |
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 |
| |
(a) | subsections (1) to (3) apply in relation to an exempt charity, |
| |
| |
(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.” |
| |
|
| |
|
| |
|
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 |
| |
| 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)”. |
| |
| |
| |
| |
| 20 |
| After Schedule 5 to the 1993 Act insert— |
| |
| |
| |
| |
| |
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 |
| |
| 30 |
| |
(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 |
| |
| 35 |
|
| |
|
| |
|
(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. |
| |
| |
| |
(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 |
| |
| |
(b) | a charity which is not an undertaking as so defined. |
| 20 |
| |
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 |
|
| |
|
| |
|
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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. |
| |
|
| |
|