Charities Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Charities Bill [HL]

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
155

“(2A)
Such regulations may, however, not impose on the charity trustees of
a charity that is a charitable trust created by any person (“the settlor”)
any requirement to disclose, in any statement of accounts prepared
by them under subsection (1) —
(a)
the identities of recipients of grants made out of the funds of
5
the charity, or
(b)
the amounts of any individual grants so made,

if the disclosure would fall to be made at a time when the settlor or
any spouse or civil partner of his was still alive.”
      (3)
After subsection (7) add—
10
“(8)
Provisions about the preparation of accounts in respect of groups
consisting of certain charities and their subsidiary undertakings, and
about other matters relating to such groups, are contained in
Schedule 5A to this Act (see section 49A below).”
129   (1)
Section 43 (annual audit or examination of charity accounts) is amended as
15
follows.
      (2)
In subsection (4) for “the Commissioners” (in both places) substitute “the
Commission”.
      (3)
In subsection (5)—
(a)
for “the Commissioners make” substitute “the Commission makes”,
20
and
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
      (4)
In subsection (6) for “the Commissioners” (in each place) substitute “the
Commission”.
25
      (5)
In subsection (7)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “they think” substitute “it thinks”.
130   (1)
Section 43A (annual audit or examination of English NHS charity accounts)
is amended as follows.
30
      (2)
In subsection (2) for “the criterion set out in subsection (1) of section 43 is met
in respect of” substitute “paragraph (a) or (b) of section 43(1) is satisfied in
relation to”.
      (3)
In subsection (5)—
(a)
for “The Commissioners” substitute “The Commission”, and
35
(b)
for “they think” substitute “it thinks”.
131   (1)
Section 43B (annual audit or examination of Welsh NHS charity accounts) is
amended as follows.
      (2)
In subsection (2) for “the criterion set out in subsection (1) of section 43 is met
in respect of” substitute “paragraph (a) or (b) of section 43(1) is satisfied in
40
relation to”.

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
156

      (3)
After subsection (4) add—
“(5)
References in this Act to an auditor or an examiner have effect in
relation to this section as references to the Auditor General for Wales
acting under this section as an auditor or examiner.”
132   (1)
Section 44 (supplementary provisions relating to audits) is amended as
5
follows.
      (2)
In subsection (1)—
(a)
in paragraph (b) after “section 43” insert “, 43A or 43B”,
(b)
for paragraph (c) substitute—
“(c)
with respect to the making of a report—
10
(i)
by an independent examiner in respect of an
examination carried out by him under section
43 above; or
(ii)
by an examiner in respect of an examination
carried out by him under section 43A or 43B
15
above;”
(c)
in each of paragraphs (d) and (e) after “independent examiner” insert
“or examiner”, and
(d)
in paragraph (f) for “the Commissioners” substitute “the
Commission”.
20
      (3)
In subsection (2)—
(a)
after “independent examiner” insert “or examiner”,
(b)
for “the Commissioners” (in the first place) substitute “the
Commission”, and
(c)
for “the Commissioners think” substitute “the Commission thinks”.
25
      (4)
Omit subsection (3).
133   (1)
Section 45 (annual reports) is amended as follows.
      (2)
In subsection (2)(b) for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (3)—
(a)
for the words from “in any” to “expenditure” substitute “a charity’s
30
gross income in any financial year”,
(b)
before “the annual report” insert “a copy of”, and
(c)
for “the Commissioners” (in both places) substitute “the
Commission”.
      (4)
In subsection (3A)—
35
(a)
for the words from “in any” to “exceeds” substitute “a charity’s gross
income in any financial year does not exceed”,
(b)
before “the annual report” insert “a copy of”,
(c)
for “the Commissioners so request” substitute “the Commission so
requests”, and
40
(d)
for “the Commissioners” (in the second place) substitute “the
Commission”.
      (5)
In subsection (4)—
(a)
for “annual report transmitted to the Commissioners” substitute
“copy of an annual report transmitted to the Commission”, and
45

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
157

(b)
before “the statement”, and before “the account and statement”,
insert “a copy of”.
      (6)
In subsection (5) before “annual report” insert “copy of an”.
      (7)
In subsection (6)—
(a)
after “Any” insert “copy of an”,
5
(b)
for “the Commissioners” (in both places) substitute “the
Commission”, and
(c)
for “they think fit” substitute “it thinks fit”.
      (8)
In subsection (7) for the words from “which they have not” onwards
substitute “of which they have not been required to transmit a copy to the
10
Commission.”
134   (1)
Section 46 (special provisions as respects accounts etc. of excepted charities)
is amended as follows.
      (2)
In subsection (2) for “the Commissioners consent” substitute “the
Commission consents”.
15
      (3)
For subsection (3) substitute—
“(3)
Except in accordance with subsections (3A) and (3B) below, nothing
in section 43, 44, 44A or 45 applies to any charity which—
(a)
falls within section 3A(2)(d) above (whether or not it also falls
within section 3A(2)(b) or (c)), and
20
(b)
is not registered.
(3A)
Section 44A above applies in accordance with subsections (2A) and
(2B) above to a charity mentioned in subsection (3) above which is
also an exempt charity.
(3B)
Sections 44 and 44A above apply to a charity mentioned in
25
subsection (3) above which is also an English National Health
Service charity or a Welsh National Health Service charity (as
defined in sections 43A and 43B above).”
      (4)
In subsection (4) for the words from “(other than” onwards substitute
“which—
30
(a)
falls within section 3A(2)(b) or (c) above but does not fall
within section 3A(2)(d), and
(b)
is not registered.”
      (5)
In subsection (5)—
(a)
for “the Commissioners” (in the first place) substitute “the
35
Commission”, and
(b)
for “the Commissioners’ request” substitute “the Commission’s
request”.
      (6)
For subsection (7) substitute—
“(7)
The following provisions of section 45 above shall apply in relation
40
to any report required to be prepared under subsection (5) above as
if it were an annual report required to be prepared under subsection
(1) of that section—
(a)
subsection (3), with the omission of the words preceding “a
copy of the annual report”, and
45

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
158

(b)
subsections (4) to (6).”
      (7)
Omit subsection (8).
135   (1)
Section 47 (public inspection of annual reports etc.) is amended as follows.
      (2)
In subsection (1)—
(a)
for “Any annual report or other document kept by the
5
Commissioners” substitute “Any document kept by the
Commission”, and
(b)
for “the Commissioners so determine” substitute “the Commission
so determines”.
      (3)
In subsection (2)(a) after “accounts” insert “or (if subsection (4) below
10
applies) of its most recent annual report”.
      (4)
After subsection (3) add—
“(4)
This subsection applies if an annual report has been prepared in
respect of any financial year of a charity in pursuance of section 45(1)
or 46(5) above.
15
(5)
In subsection (2) above the reference to a charity’s most recent
annual report is a reference to the annual report prepared in
pursuance of section 45(1) or 46(5) in respect of the last financial year
of the charity in respect of which an annual report has been so
prepared.”
20
136   (1)
Section 48 (annual returns by registered charities) is amended as follows.
      (2)
In subsection (1) for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (1A) for the words from “neither” to “exceeds” substitute “the
charity’s gross income does not exceed”.
      (4)
In subsection (2)—
25
(a)
for “the Commissioners” substitute “the Commission”, and
(b)
for “to them” substitute “to the Commission”.
      (5)
In subsection (3) for “The Commissioners” substitute “The Commission”.
137
For section 49 (offences) substitute—
“49
Offences
30
(1)
If any requirement imposed—
(a)
by section 45(3) or (3A) above (taken with section 45(3B), (4)
and (5), as applicable), or
(b)
by section 47(2) or 48(2) above,

is not complied with, each person who immediately before the date
35
for compliance specified in the section in question was a charity
trustee of the charity shall be guilty of an offence and liable on
summary conviction to the penalty mentioned in subsection (2).
(2)
The penalty is—
(a)
a fine not exceeding level 4 on the standard scale, and
40
(b)
for continued contravention, a daily default fine not
exceeding 10% of level 4 on the standard scale for so long as

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
159

the person in question remains a charity trustee of the
charity.
(3)
It is a defence for a person charged with an offence under subsection
(1) to prove that he took all reasonable steps for securing that the
requirement in question would be complied with in time.”
5
138   (1)
Section 50 (incorporation of trustees of charity) is amended as follows.
      (2)
In subsection (1)—
(a)
for “the Commissioners” (in the first and third places) substitute “the
Commission”,
(b)
for “the Commissioners consider” substitute “the Commission
10
considers”, and
(c)
for “they think fit” substitute “the Commission thinks fit”.
      (3)
In subsection (2)—
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “to them” substitute “to the Commission”, and
15
(c)
for “under section 3” substitute “in accordance with section 3A”.
139   (1)
Section 52 (applications for incorporation) is amended as follows.
      (2)
In subsection (1) for “the Commissioners” (in both places) substitute “the
Commission”.
      (3)
In subsection (2)—
20
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “they may specify” substitute “it may specify”.
140
In section 53(1) (nomination of trustees, and filling up vacancies) for “the
Commissioners” substitute “the Commission”.
141   (1)
Section 56 (power of Commissioners to amend certificate of incorporation)
25
is amended as follows.
      (2)
In subsection (1)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “of their own motion” substitute “of the Commission’s own
motion”.
30
      (3)
In subsection (2)—
(a)
for “of their own motion, the Commissioners” substitute “of its own
motion, the Commission”,
(b)
for “their proposals” substitute “its proposals”, and
(c)
for “to them” substitute “to it”.
35
      (4)
In subsection (3)—
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “their proposals” substitute “its proposals”, and
(c)
for “to them” substitute “to it”.
      (5)
In subsection (4) for “The Commissioners” substitute “The Commission”.
40
      (6)
In the sidenote, for “Commissioners” substitute “Commission”.
142   (1)
Section 57 (records of applications and certificates) is amended as follows.

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
160

      (2)
In subsection (1)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “to them” substitute “to it”.
      (3)
In subsection (2)—
(a)
for “the Commissioners” (in the first place) substitute “the
5
Commission”, and
(b)
for “the secretary of the Commissioners” substitute “a member of the
staff of the Commission”.
143
In section 58 (enforcement of orders and directions) for “the
Commissioners” substitute “the Commission”.
10
144   (1)
Section 61 (power of Commissioners to dissolve incorporated body) is
amended as follows.
      (2)
In subsection (1)—
(a)
for “the Commissioners are” substitute “the Commission is”,
(b)
for “treated by them” substituted “treated by the Commission”, and
15
(c)
for “they may of their own motion” substitute “the Commission may
of its own motion”.
      (3)
In subsection (2)—
(a)
for “the Commissioners are” substitute “the Commission is”, and
(b)
for “the Commissioners” (in the second place) substitute “the
20
Commission”.
      (4)
In subsection (4)—
(a)
for “the Commissioners so direct” substitute “the Commission so
directs”, and
(b)
for “the Commissioners” (in the second place) substitute “the
25
Commission”.
      (5)
Omit subsection (7).
      (6)
In the sidenote, for “Commissioners” substitute “Commission”.
145   (1)
Section 63 (winding up) is amended as follows.
      (2)
In subsection (2)—
30
(a)
for “the Commissioners” substitute “the Commission”,
(b)
for “they have instituted” substitute “it has instituted”, and
(c)
for “they are satisfied” substitute “it is satisfied”.
      (3)
In subsection (3) for “the Commissioners” (in both places) substitute “the
Commission”.
35
      (4)
In subsection (4) for “the Commissioners” (in both places) substitute “the
Commission”.
      (5)
In subsection (5)—
(a)
for “the Commissioners” substitute “the Commission”, and
(b)
for “by them of their own motion” substitute “by the Commission of
40
its own motion”.
146
In section 64(3) (alteration of objects clause) for “the Commissioner’s
consent” substitute “the Commission’s consent”.

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
161

147
In section 65(4) (invalidity of certain transactions) for “the Commissioners”
substitute “the Commission”.
148
In section 66 (requirement of consent of Commissioners to certain acts), in
subsection (1) and the sidenote, for “Commissioners” substitute
“Commission”.
5
149   (1)
Section 69 (investigation of accounts) is amended as follows.
      (2)
In subsection (1)—
(a)
for “the Commissioners” substitute “the Commission”,
(b)
for “they think fit” substitute “the Commission thinks fit”, and
(c)
for “by them” substitute “by the Commission”.
10
      (3)
In subsections (2)(c) and (3) for “the Commissioners” substitute “the
Commission”.
      (4)
In subsection (4)—
(a)
for “the Commissioners” (in the first place) substitute “the
Commission”, and
15
(b)
for “the Commissioners think” substitute “the Commission thinks”.
150
For the heading preceding section 72 substitute “Charity trustees”.
151   (1)
Section 72 (persons disqualified for being trustees of a charity) is amended
as follows.
      (2)
In subsection (1)(d)(i) after “by the” insert “Commission or”.
20
      (3)
In subsection (4) for “The Commissioners” substitute “The Commission”.
      (4)
In subsection (6)—
(a)
for “the Commissioners” (in the first place) substitute “the
Commission”,
(b)
for “they think fit” substitute “it thinks fit”,
25
(c)
after “order of” insert “the Commission or”, and
(d)
for “the Commissioners” (in the third place) substitute “the
Commission”.
      (5)
After subsection (7) add—
“(8)
In this section “the Commissioners” means the Charity
30
Commissioners for England and Wales.”
152
In section 73(4) (person acting as charity trustee while disqualified)—
(a)
for “the Commissioners are” substitute “the Commission is”,
(b)
for “they may by order” substitute “the Commission may by order”,
and
35
(c)
for “(as determined by them)” substitute “(as determined by the
Commission)”.
153
For the heading preceding section 74 substitute “Miscellaneous powers of
charities”.
154
In section 76(2) (local authority’s index of local charities)—
40
(a)
for “the Commissioners” (in both places) substitute “the
Commission”, and
(b)
for “they will” substitute “it will”.