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
147

      (3)
In subsection (5) for “section 3(7)(b) above” substitute “section 3B(3)”.
100
For the heading for Part 3 substitute “Information Powers”.
101   (1)
Section 8 (power to institute inquiries) is amended as follows.
      (2)
In subsection (1) for “The Commissioners” substitute “The Commission”.
      (3)
In subsection (2)—
5
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “themselves” substitute “itself”, and
(c)
for “to them” substitute “to the Commission”.
      (4)
In subsection (3) for “the Commissioners, or a person appointed by them”
substitute “the Commission, or a person appointed by the Commission”.
10
      (5)
In subsection (5) for “The Commissioners” substitute “The Commission”.
      (6)
In subsection (6)—
(a)
for “the Commissioners” substitute “the Commission”,
(b)
for “they think” substitute “the Commission thinks”,
(c)
for “their opinion” substitute “the Commission’s opinion”, and
15
(d)
for “to them” substitute “to the Commission”.
      (7)
In subsection (7) for “the Commissioners” substitute “the Commission”.
102   (1)
Section 9 (power to call for documents and search records) is amended as
follows.
      (2)
In subsection (1)—
20
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “furnish them” (in both places) substitute “furnish the
Commission”,
(c)
for “their functions” (in both places) substitute “the Commission’s
functions”, and
25
(d)
for “them for their” substitute “the Commission for its”.
      (3)
In subsection (2)—
(a)
for “officer of the Commissioners, if so authorised by them”
substitute “member of the staff of the Commission, if so authorised
by it”, and
30
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
      (4)
In subsection (3)—
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “to them” (in the first place) substitute “to it”,
35
(c)
for “to them” (in the second place) substitute “to the Commission”,
(d)
for “their inspection” substitute “it to inspect”, and
(e)
for “the Commissioners” substitute “the Commission”.
      (5)
After subsection (5) add—
“(6)
In subsection (2) the reference to a member of the staff of the
40
Commission includes the official custodian even if he is not a
member of the staff of the Commission.”

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
148

103
For section 10 substitute—
“10
Disclosure of information to Commission
(1)
Any relevant public authority may disclose information to the
Commission if the disclosure is made for the purpose of enabling or
assisting the Commission to discharge any of its functions.
5
(2)
But Revenue and Customs information may be disclosed under
subsection (1) only if it relates to an institution, undertaking or body
falling within one (or more) of the following paragraphs—
(a)
a charity;
(b)
an institution which is established for charitable, benevolent
10
or philanthropic purposes;
(c)
an institution by or in respect of which a claim for exemption
has at any time been made under section 505(1) of the Income
and Corporation Taxes Act 1988;
(d)
a subsidiary undertaking of a charity;
15
(e)
a body entered in the Scottish Charity Register which is
managed or controlled wholly or mainly in or from England
or Wales.
(3)
In subsection (2)(d) above “subsidiary undertaking of a charity”
means an undertaking (as defined by section 259(1) of the
20
Companies Act 1985) in relation to which—
(a)
a charity is (or is to be treated as) a parent undertaking in
accordance with the provisions of section 258 of, and
Schedule 10A to, the Companies Act 1985, or
(b)
two or more charities would, if they were a single charity, be
25
(or be treated as) a parent undertaking in accordance with
those provisions.
(4)
For the purposes of the references to a parent undertaking—
(a)
in subsection (3) above, and
(b)
in section 258 of, and Schedule 10A to, the Companies Act
30
1985 as they apply for the purposes of that subsection,

“undertaking” includes a charity which is not an undertaking as
defined by section 259(1) of that Act.
10A
Disclosure of information by Commission
(1)
Subject to subsections (2) and (3) below, the Commission may
35
disclose to any relevant public authority any information received by
the Commission in connection with any of the Commission’s
functions—
(a)
if the disclosure is made for the purpose of enabling or
assisting the relevant public authority to discharge any of its
40
functions, or
(b)
if the information so disclosed is otherwise relevant to the
discharge of any of the functions of the relevant public
authority.
(2)
In the case of information disclosed to the Commission under section
45
10(1) above, the Commission’s power to disclose the information
under subsection (1) above is exercisable subject to any express

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
149

restriction subject to which the information was disclosed to the
Commission.
(3)
Subsection (2) above does not apply in relation to Revenue and
Customs information disclosed to the Commission under section
10(1) above; but any such information may not be further disclosed
5
(whether under subsection (1) above or otherwise) except with the
consent of the Commissioners for Her Majesty’s Revenue and
Customs.
(4)
Any responsible person who discloses information in contravention
of subsection (3) above is guilty of an offence and liable—
10
(a)
on summary conviction, to imprisonment for a term not
exceeding 12 months or to a fine not exceeding the statutory
maximum, or both;
(b)
on conviction on indictment, to imprisonment for a term not
exceeding two years or to a fine, or both.
15
(5)
It is a defence for a responsible person charged with an offence under
subsection (4) above of disclosing information to prove that he
reasonably believed—
(a)
that the disclosure was lawful, or
(b)
that the information had already and lawfully been made
20
available to the public.
(6)
In the application of this section to Scotland or Northern Ireland, the
reference to 12 months in subsection (4) is to be read as a reference to
6 months.
(7)
In this section “responsible person” means a person who is or was—
25
(a)
a member of the Commission,
(b)
a member of the staff of the Commission,
(c)
a person acting on behalf of the Commission or a member of
the staff of the Commission, or
(d)
a member of a committee established by the Commission.
30
10B
Disclosure to and by principal regulators of exempt charities
(1)
Sections 10 and 10A above apply with the modifications in
subsections (2) to (4) below in relation to the disclosure of
information to or by the principal regulator of an exempt charity.
(2)
References in those sections to the Commission or to any of its
35
functions are to be read as references to the principal regulator of an
exempt charity or to any of the functions of that body or person as
principal regulator in relation to the charity.
(3)
Section 10 above has effect as if for subsections (2) and (3) there were
substituted—
40
“(2)
But Revenue and Customs information may be disclosed
under subsection (1) only if it relates to—
(a)
the exempt charity in relation to which the principal
regulator has functions as such, or
(b)
a subsidiary undertaking of the exempt charity.
45

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
150

(3)
In subsection (2)(b) above “subsidiary undertaking of the
exempt charity” means an undertaking (as defined by section
259(1) of the Companies Act 1985) in relation to which—
(a)
the exempt charity is (or is to be treated as) a parent
undertaking in accordance with the provisions of
5
section 258 of, and Schedule 10A to, the Companies Act
1985, or
(b)
the exempt charity and one or more other charities
would, if they were a single charity, be (or be treated as)
a parent undertaking in accordance with those
10
provisions.”
(4)
Section 10A above has effect as if for the definition of “responsible
person” in subsection (7) there were substituted a definition
specified by regulations under section 13(4)(b) of the Charities Act
2006 (regulations prescribing principal regulators).
15
(5)
Regulations under that section may also make such amendments or
other modifications of any enactment as the Secretary of State
considers appropriate for securing that any disclosure provisions
that would otherwise apply in relation to the principal regulator of
an exempt charity do not apply in relation to that body or person in
20
its or his capacity as principal regulator.
(6)
In subsection (5) above “disclosure provisions” means provisions
having effect for authorising, or otherwise in connection with, the
disclosure of information by or to the principal regulator concerned.
10C
Disclosure of information: supplementary
25
(1)
In sections 10 and 10A above “relevant public authority” means—
(a)
any government department (including a Northern Ireland
department),
(b)
any local authority,
(c)
any constable, and
30
(d)
any other body or person discharging functions of a public
nature (including a body or person discharging regulatory
functions in relation to any description of activities).
(2)
In section 10A above “relevant public authority” also includes any
body or person within subsection (1)(d) above in a country or
35
territory outside the United Kingdom.
(3)
In sections 10 to 10B above and this section—
“enactment” has the same meaning as in the Charities Act 2006;
“Revenue and Customs information” means information held
as mentioned in section 18(1) of the Commissioners for
40
Revenue and Customs Act 2005.
(4)
Nothing in sections 10 and 10A above (or in those sections as applied
by section 10B(1) to (4) above) authorises the making of a disclosure
which—
(a)
contravenes the Data Protection Act 1998, or
45
(b)
is prohibited by Part 1 of the Regulation of Investigatory
Powers Act 2000.”

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
151

104   (1)
Section 11 (supply of false or misleading information) is amended as
follows.
      (2)
For “Commissioners” (in each place including the sidenote) substitute
“Commission”.
      (3)
In subsection (1)(b) for “their functions” substitute “its functions”.
5
105
In the heading for Part 4 for “and Commissioners” substitute “and
Commission”.
106   (1)
Section 14 (application cy-près of gifts of donors unknown or disclaiming) is
amended as follows.
      (2)
In subsection (6) for “the Commissioners so direct” substitute “the
10
Commission so directs”.
      (3)
In subsection (8) for “the Commissioners” substitute “the Commission”.
      (4)
In subsection (9)—
(a)
for “the Commissioners” (in both places) substitute “the
Commission”, and
15
(b)
for “they think fit” substitute “it thinks fit”.
107
In the heading preceding section 16 for “Powers of Commissioners” substitute
“Powers of Commission”.
108   (1)
Section 16 (concurrent jurisdiction of Commissioners with High Court) is
amended as follows.
20
      (2)
In subsection (1) for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (2)—
(a)
for “the Commissioners for them” substitute “the Commission for it”,
and
(b)
for “the Commissioners” (in the second place) substitute “the
25
Commission”.
      (4)
In subsection (3) for “The Commissioners” substitute “The Commission”.
      (5)
In subsection (4) for “the Commissioners shall not exercise their” substitute
“the Commission shall not exercise its”.
      (6)
In subsection (5)—
30
(a)
for “income from all sources does not in aggregate” substitute “gross
income does not”, and
(b)
for “the Commissioners may exercise their” substitute “the
Commission may exercise its”.
      (7)
In subsection (6)—
35
(a)
for “the Commissioners are” substitute “the Commission is”,
(b)
for “the Commissioners have” substitute “the Commission has”,
(c)
for “the Commissioners” (in the third and fourth places) substitute
“the Commission”, and
(d)
for “they act” substitute “it acts”.
40
      (8)
In subsection (7)—
(a)
for “the Commissioners” (in the first and third places) substitute “the
Commission”, and

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
152

(b)
for “the Commissioners consider” substitute “the Commission
considers”.
      (9)
In subsection (8)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “their jurisdiction” substitute “its jurisdiction”.
5
     (10)
In subsection (9) for “the Commissioners shall give notice of their” substitute
“the Commission shall give notice of its”.
     (11)
In subsection (10)—
(a)
for “The Commissioners shall not exercise their” substitute “The
Commission shall not exercise its”, and
10
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
     (12)
Omit subsections (11) to (14).
     (13)
In subsection (15)(b) for “the Commissioners may exercise their” substitute
“the Commission may exercise its”.
15
109   (1)
Section 17 (further power to make schemes or alter application of charitable
property) is amended as follows.
      (2)
In subsection (1)—
(a)
for “the Commissioners” (in both places) substitute “the
Commission”, and
20
(b)
for “by them” substitute “by the Commission”.
      (3)
In subsection (2) for “the Commissioners” substitute “the Commission”.
      (4)
In subsection (4) for “the Commissioners” (in both places) substitute “the
Commission”.
      (5)
In subsection (6)—
25
(a)
for “Commissioners” (in both places) substitute “Commission”,
(b)
for “if they were” substitute “if the Commission was”,
(c)
for “they act” substitute “it acts”, and
(d)
for “to them” substitute “to it”.
      (6)
In subsection (7) for “the Commissioners” substitute “the Commission”.
30
      (7)
In subsection (8)—
(a)
for “the Commissioners are” substitute “the Commission is”, and
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
110   (1)
Section 18 (power to act for protection of charities) is amended as follows.
35
      (2)
In subsection (1)—
(a)
for “after they have” substitute “after it has”,
(b)
for “the Commissioners are” substitute “the Commission is”,
(c)
for “the Commissioners may of their” substitute “the Commission
may of its”,
40
(d)
for “as they consider” substitute “as it considers”,
(e)
for “the Commissioners” (in the third, fourth and fifth places)
substitute “the Commission”, and

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
153

(f)
for “a receiver” substitute “an interim manager, who shall act as
receiver”.
      (3)
In subsection (2)—
(a)
for “they have” substitute “it has”,
(b)
for “the Commissioners are” substitute “the Commission is”, and
5
(c)
for “the Commissioners may of their” substitute “the Commission
may of its”.
      (4)
In subsection (4)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “their own motion” substitute “its own motion”.
10
      (5)
In subsection (5)—
(a)
for “The Commissioners may by order made of their” substitute “The
Commission may by order made of its”,
(b)
for “removed by them” substitute “removed by the Commission”,
and
15
(c)
for “the Commissioners are of” (in both places) substitute “the
Commission is of”.
      (6)
In subsection (6)—
(a)
for “the Commissioners” (in both places) substitute “the
Commission”,
20
(b)
for “their own motion” substitute “its own motion”, and
(c)
for “by them” substitute “by it”.
      (7)
Omit subsections (8) to (10).
      (8)
In subsection (11) for “the Commissioners” substitute “the Commission”.
      (9)
In subsection (12)—
25
(a)
for “the Commissioners” substitute “the Commission”, and
(b)
for “their intention” substitute “its intention”.
     (10)
In subsection (13)—
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “they think fit” substitute “it thinks fit”,
30
(c)
for “by them” substitute “by it”,
(d)
for “to them” substitute “to the Commission”, and
(e)
for “they shall” substitute “the Commission shall”.
111   (1)
Section 19 (supplementary provisions relating to receiver and manager
appointed for a charity) is amended as follows.
35
      (2)
For subsection (1) substitute—
“(1)
The Commission may under section 18(1)(vii) above appoint to be
interim manager in respect of a charity such person (other than a
member of its staff) as it thinks fit.”
      (3)
In subsection (2)—
40
(a)
for “the Commissioners” (in both places) substitute “the
Commission”, and
(b)
for “receiver and manager” substitute “interim manager”.