Charities Bill [HL]

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Charities Bill [HL]

Charities Bill [HL]
Schedule 8 — Minor and consequential amendments
154

      (4)
In subsection (3) for “receiver and manager” (in both places) substitute
“interim manager”.
      (5)
In subsection (4)—
(a)
for “receiver and manager” substitute “interim manager”, and
(b)
for “the Commissioners” substitute “the Commission”.
5
      (6)
In subsections (6)(c) and (7) for “the Commissioners” substitute “the
Commission”.
      (7)
In the sidenote for “receiver and manager” substitute “interim manager”.
112
After section 19B (inserted by section 21 of this Act) insert—
“19C
Copy of order under section 18, 18A, 19A or 19B, and Commission’s
10
reasons, to be sent to charity
(1)
Where the Commission makes an order under section 18, 18A, 19A
or 19B, it must send the documents mentioned in subsection (2)
below—
(a)
to the charity concerned (if a body corporate), or
15
(b)
(if not) to each of the charity trustees.
(2)
The documents are—
(a)
a copy of the order, and
(b)
a statement of the Commission’s reasons for making it.
(3)
The documents must be sent to the charity or charity trustees as soon
20
as practicable after the making of the order.
(4)
The Commission need not, however, comply with subsection (3)
above in relation to the documents, or (as the case may be) the
statement of its reasons, if it considers that to do so—
(a)
would prejudice any inquiry or investigation, or
25
(b)
would not be in the interests of the charity;

but, once the Commission considers that this is no longer the case, it
must send the documents, or (as the case may be) the statement, to
the charity or charity trustees as soon as practicable.
(5)
Nothing in this section requires any document to be sent to a person
30
who cannot be found or who has no known address in the United
Kingdom.
(6)
Any documents required to be sent to a person under this section
may be sent to, or otherwise served on, that person in the same way
as an order made by the Commission under this Act could be served
35
on him in accordance with section 91 below.”
113
In section 22(3) (property vested in official custodian) for “the
Commissioners” substitute “the Commission”.
114   (1)
Section 23 (divestment in case of land subject to Reverter of Sites Act 1987
(c. 15)) is amended as follows.
40
      (2)
In subsection (1)—
(a)
for “the Commissioners” (in both places) substitute “the
Commission”,

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

(b)
for “by them of their own” substitute “by the Commission of its
own”, and
(c)
for “appear to them” substitute “appear to the Commission”.
      (3)
In subsection (2)—
(a)
for “the Commissioners (of their own motion)” substitute “the
5
Commission (of its own motion)”, and
(b)
omit “or them”.
      (4)
In subsection (3)—
(a)
for “the Commissioners” (in the first and second places) substitute
“the Commission”, and
10
(b)
for “the Commissioners is or are” substitute “the Commission is”.
115
In section 24 (schemes to establish common investment funds), in
subsections (1) and (2), for “the Commissioners” substitute “the
Commission”.
116
In section 25(1) (schemes to establish common deposit funds) for “the
15
Commissioners” substitute “the Commission”.
117
For the heading preceding section 26 substitute “Additional powers of
Commission”.
118
In section 26(1) (power to authorise dealings with charity property)—
(a)
for “the Commissioners” substitute “the Commission”, and
20
(b)
for “they may” substitute “the Commission may”.
119   (1)
Section 27 (power to authorise ex gratia payments) is amended as follows.
      (2)
In subsection (1) for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (2)—
(a)
for “the Commissioners” (in both places) substitute “the
25
Commission”, and
(b)
for “by them” substitute “by the Commission”.
      (4)
In subsection (3)—
(a)
for “the Commissioners for them” substitute “the Commission for it”,
(b)
for “they are not” substitute “it is not”,
30
(c)
for “they consider” substitute “the Commission considers”,
(d)
for “by them” substitute “by the Commission”, and
(e)
for “they shall” substitute “the Commission shall”.
      (5)
In subsection (4)—
(a)
for “to them” substitute “to the Commission”, and
35
(b)
for “the Commissioners determine” substitute “the Commission
determines”.
120   (1)
Section 28 (power to give directions about dormant bank accounts) is
amended as follows.
      (2)
In subsection (1)—
40
(a)
for “the Commissioners” substitute “the Commission”,
(b)
for “are informed” substitute “is informed”,
(c)
for “are unable” substitute “is unable”, and

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

(d)
for “they may give” substitute “it may give”.
      (3)
In subsection (3)—
(a)
for “Commissioners” (in both places) substitute “Commission”,
(b)
for “they consider” substitute “it considers”,
(c)
for “to them” substitute “to the Commission”, and
5
(d)
for “they have received” substitute “it has received”.
      (4)
In subsection (5)—
(a)
for “the Commissioners have been” substitute “the Commission has
been”,
(b)
for “the Commissioners” (in the second and third places) substitute
10
“the Commission”,
(c)
for “they shall revoke” substitute “it shall revoke”, and
(d)
for “by them” substitute “by it”.
      (5)
In subsection (7)—
(a)
for “the Commissioners” substitute “the Commission”, and
15
(b)
for “them to discharge their functions” substitute “the Commission
to discharge its functions”.
      (6)
In subsection (8)(a) for “the Commissioners are informed” substitute “the
Commission is informed”.
      (7)
In subsection (9)—
20
(a)
for “the Commissioners have” substitute “the Commission has”, and
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
121   (1)
Section 30 (powers for preservation of charity documents) is amended as
follows.
25
      (2)
In subsection (1) for “The Commissioners” substitute “The Commission”.
      (3)
In subsection (2) for “Commissioners” (in each place) substitute
“Commission”.
      (4)
In subsection (3)—
(a)
for “the Commissioners” (in the first place) substitute “the
30
Commission”,
(b)
for “with them” substitute “with the Commission”,
(c)
for “officer of the Commissioners generally or specially authorised
by them” substitute “member of the staff of the Commission
generally or specially authorised by the Commission”.
35
      (5)
In subsection (4) for “the Commissioners” substitute “the Commission”.
      (6)
In subsection (5)—
(a)
for “the Commissioners” substitute “the Commission”,
(b)
for “by them” substitute “by the Commission”, and
(c)
for “with them” substitute “with the Commission”.
40
122   (1)
Section 31 (power to order taxation of solicitor’s bill) is amended as follows.
      (2)
In subsection (1) for “The Commissioners” substitute “The Commission”.

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

      (3)
In subsection (3) for “the Commissioners are” substitute “the Commission
is”.
123   (1)
Section 32 (proceedings by Commissioners) is amended as follows.
      (2)
In subsections (1) and (3) for “the Commissioners” substitute “the
Commission”.
5
      (3)
In subsection (5)—
(a)
for “the Commissioners” substitute “the Commission”, and
(b)
for “by them of their own” substitute “by the Commission of its
own”.
      (4)
In the sidenote, for “Commissioners” substitute “Commission”.
10
124   (1)
Section 33 (proceedings by other persons) is amended as follows.
      (2)
In subsection (2) for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (3)—
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “their opinion” substitute “its opinion”, and
15
(c)
for “by them” substitute “by the Commission”.
      (4)
In subsections (5) and (6) for “the Commissioners” substitute “the
Commission”.
      (5)
In subsection (7)—
(a)
for “the Commissioners” (in both places) substitute “the
20
Commission”, and
(b)
for “they think” substitute “the Commission thinks”.
125
In section 34 (report of inquiry to be evidence in certain proceedings), in
subsections (1) and (2), for “the Commissioners” substitute “the
Commission”.
25
126
In section 35(1) (application of certain provisions to trust corporations) for
“the Commissioners” substitute “the Commission”.
127   (1)
Section 36 (restrictions on dispositions) is amended as follows.
      (2)
In subsection (1)—
(a)
for “sold” substitute “conveyed, transferred”, and
30
(b)
for “the Commissioners” substitute “the Commission”.
      (3)
In subsection (3) after “subsection (5) below,” insert “the requirements
mentioned in subsection (2)(b) above are that”.
      (4)
In subsection (5) after “consideration of a fine),” insert “the requirements
mentioned in subsection (2)(b) above are that”.
35
      (5)
In subsection (6)—
(a)
for “sold” substitute “conveyed, transferred”, and
(b)
for “previously” substitute “before the relevant time”.
      (6)
After subsection (6) insert—
“(6A)
In subsection (6) above “the relevant time” means—
40

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

(a)
where the charity trustees enter into an agreement for the
sale, or (as the case may be) for the lease or other disposition,
the time when they enter into that agreement, and
(b)
in any other case, the time of the disposition.”
      (7)
In subsection (8)—
5
(a)
for “The Commissioners” substitute “The Commission”,
(b)
for “the Commissioners are satisfied” substitute “the Commission is
satisfied”, and
(c)
for “for them” substitute “for the Commission”.
128
In section 37 (supplementary provisions relating to dispositions), in
10
subsections (2) and (4)—
(a)
for “sold” substitute “conveyed, transferred”, and
(b)
for “the Commissioners” substitute “the Commission”.
129
In section 38(1) (restrictions on mortgaging) for “the Commissioners”
substitute “the Commission”.
15
130   (1)
Section 39 (supplementary provisions relating to mortgaging) is amended as
follows.
      (2)
In subsections (2)(a) and (4) for “the Commissioners” substitute “the
Commission”.
      (3)
After subsection (4) insert—
20
“(4A)
Where subsection (3D) of section 38 above applies to any mortgage
of land held by or in trust for a charity, the charity trustees shall
certify in relation to any transaction falling within that subsection
that they have obtained and considered such advice as is mentioned
in that subsection.
25
(4B)
Where subsection (4A) above has been complied with in relation to
any transaction, then, in favour of a person who (whether under the
mortgage or afterwards) has acquired or acquires an interest in the
land for money or money’s worth, it shall be conclusively presumed
that the facts were as stated in the certificate.”
30
131
In section 41(4) (obligation to preserve accounting records) for “the
Commissioners consent” substitute “the Commission consents”.
132   (1)
Section 42 (annual statements of accounts) is amended as follows.
      (2)
After subsection (2) insert—
“(2A)
Such regulations may, however, not impose on the charity trustees of
35
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
the charity, or
40
(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.”

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

      (3)
After subsection (7) add—
“(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).”
5
133   (1)
Section 43 (annual audit or examination of charity accounts) is amended as
follows.
      (2)
In subsection (4) for “the Commissioners” (in both places) substitute “the
Commission”.
      (3)
In subsection (5)—
10
(a)
for “the Commissioners make” substitute “the Commission makes”,
and
(b)
for “the Commissioners” (in the second place) substitute “the
Commission”.
      (4)
In subsection (6) for “the Commissioners” (in each place) substitute “the
15
Commission”.
      (5)
In subsection (7)—
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “they think” substitute “it thinks”.
134   (1)
Section 43A (annual audit or examination of English NHS charity accounts)
20
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
relation to”.
      (3)
In subsection (5)—
25
(a)
for “The Commissioners” substitute “The Commission”, and
(b)
for “they think” substitute “it thinks”.
135   (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
30
in respect of” substitute “paragraph (a) or (b) of section 43(1) is satisfied in
relation to”.
      (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
35
acting under this section as an auditor or examiner.”
136   (1)
Section 44 (supplementary provisions relating to audits) is amended as
follows.
      (2)
In subsection (1)—
(a)
in paragraph (b) after “section 43” insert “, 43A or 43B”,
40
(b)
for paragraph (c) substitute—
“(c)
with respect to the making of a report—

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

(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
5
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”.
10
      (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”.
15
      (4)
Omit subsection (3).
137   (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
20
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)—
25
(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, be transmitted to them”
substitute “the Commission so requests, be transmitted to it”, and
30
(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
35
(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”,
40
(b)
for “the Commissioners” (in both places) substitute “the
Commission”, and
(c)
for “they think fit” substitute “it thinks fit”.