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Other Bills before Parliament

Charities Bill [HL]


Charities Bill [HL]
Schedule 7 — Charitable incorporated organisations
Part 1 — New Part 8A of and Schedule 5B to 1993 Act

116

 

(2)   

In subsection (1)(d), “conveyance” means any instrument creating,

transferring, varying or extinguishing an interest in land.

(3)   

Subsection (5) applies if the name of a CIO does not include—

(a)   

“charitable incorporated organisation”, or

(b)   

“CIO”, with or without full stops after each letter, or

5

(c)   

a Welsh equivalent mentioned in subsection (4) (but this

option applies only if the CIO’s constitution is in Welsh),

   

and it is irrelevant, in any such case, whether or not capital letters are

used.

(4)   

The Welsh equivalents referred to in subsection (3)(c) are—

10

(a)   

“sefydliad elusennol corfforedig”, or

(b)   

“SEC”, with or without full stops after each letter.

(5)   

If this subsection applies, the fact that a CIO is a CIO shall be stated

in legible characters in all the documents mentioned in subsection

(1).

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(6)   

The statement required by subsection (5) shall be in English, except

that in the case of a document which is otherwise wholly in Welsh,

the statement may be in Welsh.

69D     

Offences connected with name and status

(1)   

A charity trustee of a CIO or a person on the CIO’s behalf who issues

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or authorises the issue of any document referred to in paragraph (a),

(b), (d) or (e) of section 69C(1) above which fails to comply with the

requirements of section 69C(1), (5) or (6) is liable on summary

conviction to a fine not exceeding level 3 on the standard scale.

(2)   

A charity trustee of a CIO or a person on the CIO’s behalf who signs

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or authorises to be signed on behalf of the CIO any document

referred to in paragraph (c) of section 69C(1) above which fails to

comply with the requirements of section 69C(1), (5) or (6)—

(a)   

is liable on summary conviction to a fine not exceeding level

3 on the standard scale, and

30

(b)   

is personally liable to the holder of the bill of exchange (etc.)

for the amount of it, unless it is duly paid by the CIO.

(3)   

A person who holds any body out as being a CIO when it is not

(however he does this) is guilty of an offence and is liable on

summary conviction to a fine not exceeding level 3 on the standard

35

scale.

(4)   

It is a defence for a person charged with an offence under subsection

(3) to prove that he believed on reasonable grounds that the body

was a CIO.

Registration

40

69E     

Application for registration

(1)   

Any one or more persons (“the applicants”) may apply to the

Commission for a CIO to be constituted and for its registration as a

charity.

 

 

Charities Bill [HL]
Schedule 7 — Charitable incorporated organisations
Part 1 — New Part 8A of and Schedule 5B to 1993 Act

117

 

(2)   

The applicants shall supply the Commission with—

(a)   

a copy of the proposed constitution of the CIO,

(b)   

such other documents or information as may be prescribed

by regulations made by the Secretary of State, and

(c)   

such other documents or information as the Commission

5

may require for the purposes of the application.

(3)   

The Commission shall refuse such an application if—

(a)   

it is not satisfied that the CIO would be a charity at the time

it would be registered, or

(b)   

the CIO’s proposed constitution does not comply with one or

10

more of the requirements of section 69B above and any

regulations made under that section.

(4)   

The Commission may refuse such an application if—

(a)   

the proposed name of the CIO is the same as, or is in the

opinion of the Commission too like, the name of any other

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charity (whether registered or not), or

(b)   

the Commission is of the opinion referred to in any of

paragraphs (b) to (e) of section 6(2) above (power of

Commission to require change in charity’s name) in relation

to the proposed name of the CIO (reading paragraph (b) as

20

referring to the proposed purposes of the CIO and to the

activities which it is proposed it should carry on).

69F     

Effect of registration

(1)   

If the Commission grants an application under section 69E above it

shall register the CIO to which the application relates as a charity in

25

the register of charities.

(2)   

Upon the registration of the CIO in the register of charities, it

becomes by virtue of the registration a body corporate—

(a)   

whose constitution is that proposed in the application,

(b)   

whose name is that specified in the constitution, and

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(c)   

whose first member is, or first members are, the applicants

referred to in section 69E above.

(3)   

All property for the time being vested in the applicants (or, if more

than one, any of them) on trust for the charitable purposes of the CIO

(when incorporated) shall by virtue of this subsection become vested

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in the CIO upon its registration.

(4)   

The entry relating to the charity’s registration in the register of

charities shall include—

(a)   

the date of the charity’s registration, and

(b)   

a note saying that it is constituted as a CIO.

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(5)   

A copy of the entry in the register shall be sent to the charity at the

principal office of the CIO.

 

 

Charities Bill [HL]
Schedule 7 — Charitable incorporated organisations
Part 1 — New Part 8A of and Schedule 5B to 1993 Act

118

 

Conversion, amalgamation and transfer

69G     

Conversion of charitable company or registered industrial and

provident society

(1)   

The following may apply to the Commission to be converted into a

CIO, and for the CIO’s registration as a charity, in accordance with

5

this section—

(a)   

a charitable company,

(b)   

a charity which is a registered society within the meaning of

the Industrial and Provident Societies Act 1965.

(2)   

But such an application may not be made by—

10

(a)   

a company or registered society having a share capital if any

of the shares are not fully paid up, or

(b)   

an exempt charity.

(3)   

Such an application is referred to in this section and sections 69H and

69I below as an “application for conversion”.

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(4)   

The Commission shall notify the following of any application for

conversion—

(a)   

the appropriate registrar, and

(b)   

such other persons (if any) as the Commission thinks

appropriate in the particular case.

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(5)   

The company or registered society shall supply the Commission

with—

(a)   

a copy of a resolution of the company or registered society

that it be converted into a CIO,

(b)   

a copy of the proposed constitution of the CIO,

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(c)   

a copy of a resolution of the company or registered society

adopting the proposed constitution of the CIO,

(d)   

such other documents or information as may be prescribed

by regulations made by the Secretary of State, and

(e)   

such other documents or information as the Commission

30

may require for the purposes of the application.

(6)   

The resolution referred to in subsection (5)(a) shall be—

(a)   

a special resolution of the company or registered society, or

(b)   

a unanimous written resolution signed by or on behalf of all

the members of the company or registered society who

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would be entitled to vote on a special resolution.

(7)   

In the case of a registered society, “special resolution” has the

meaning given in section 52(3) of the Industrial and Provident

Societies Act 1965.

(8)   

In the case of a company limited by guarantee which makes an

40

application for conversion (whether or not it also has a share capital),

the proposed constitution of the CIO shall (unless subsection (10)

applies) provide for the CIO’s members to be liable to contribute to

its assets if it is wound up, and for the amount up to which they are

so liable.

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Charities Bill [HL]
Schedule 7 — Charitable incorporated organisations
Part 1 — New Part 8A of and Schedule 5B to 1993 Act

119

 

(9)   

That amount shall not be less than the amount up to which they were

liable to contribute to the assets of the company if it was wound up.

(10)   

If the amount each member of the company is liable to contribute to

its assets on its winding up is £10 or less, the guarantee shall be

extinguished on the conversion of the company into a CIO, and the

5

requirements of subsections (8) and (9) do not apply.

(11)   

In subsection (4), and in sections 69H and 69I below, “the appropriate

registrar” means—

(a)   

in the case of an application for conversion by a charitable

company, the registrar of companies,

10

(b)   

in the case of an application for conversion by a registered

society, the Financial Services Authority.

(12)   

In this section, “charitable company” means a company which is a

charity.

69H     

Conversion: consideration of application

15

(1)   

The Commission shall consult those to whom it has given notice of

an application for conversion under section 69G(4) above about

whether the application should be granted.

(2)   

The Commission shall refuse an application for conversion if—

(a)   

it is not satisfied that the CIO would be a charity at the time

20

it would be registered,

(b)   

the CIO’s proposed constitution does not comply with one or

more of the requirements of section 69B above and any

regulations made under that section, or

(c)   

in the case of an application for conversion made by a

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company limited by guarantee, the CIO’s proposed

constitution does not comply with the requirements of

subsections (8) and (9) of section 69G above.

(3)   

The Commission may refuse an application for conversion if—

(a)   

the proposed name of the CIO is the same as, or is in the

30

opinion of the Commission too like, the name of any other

charity (whether registered or not),

(b)   

the Commission is of the opinion referred to in any of

paragraphs (b) to (e) of section 6(2) above (power of

Commission to require change in charity’s name) in relation

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to the proposed name of the CIO (reading paragraph (b) as

referring to the proposed purposes of the CIO and to the

activities which it is proposed it should carry on), or

(c)   

having considered any representations received from those

whom it has consulted under subsection (1), the Commission

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considers (having regard to any regulations made under

subsection (4)) that it would not be appropriate to grant the

application.

(4)   

The Secretary of State may make provision in regulations about

circumstances in which it would not be appropriate to grant an

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application for conversion.

(5)   

If the Commission refuses an application for conversion, it shall so

notify the appropriate registrar (see section 69G(11) above).

 

 

 
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