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Charities Bill [HL]


Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 2 — The Charity Tribunal

8

 

Chapter 2

The Charity Tribunal

8       

The Charity Tribunal

(1)   

After section 2 of the 1993 Act insert—

“Part 1A

5

The Charity Tribunal

2A      

The Charity Tribunal

(1)   

There shall be a tribunal to be known as the Charity Tribunal (in this

Act referred to as “the Tribunal”).

(2)   

In Welsh the Tribunal shall be known as “Tribiwnlys Elusennau”.

10

(3)   

The provisions of Schedule 1B to this Act shall have effect with respect

to the constitution of the Tribunal and other matters relating to it.

(4)   

The Tribunal shall have jurisdiction to hear and determine—

(a)   

such appeals and applications as may be made to the Tribunal

in accordance with Schedule 1C to this Act, or any other

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enactment, in respect of decisions, orders or directions of the

Commission, and

(b)   

such matters as may be referred to the Tribunal in accordance

with Schedule 1D to this Act by the Commission or the Attorney

General.

20

(5)   

Such appeals, applications and matters shall be heard and determined

by the Tribunal in accordance with those Schedules, or any such

enactment, taken with section 2B below and rules made under that

section.

2B      

Practice and procedure

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(1)   

The Lord Chancellor may make rules—

(a)   

regulating the exercise of rights to appeal or to apply to the

Tribunal and matters relating to the making of references to it;

(b)   

about the practice and procedure to be followed in relation to

proceedings before the Tribunal.

30

(2)   

Rules under subsection (1)(a) above may, in particular, make

provision—

(a)   

specifying steps which must be taken before appeals,

applications or references are made to the Tribunal (and the

period within which any such steps must be taken);

35

(b)   

specifying the period following the Commission’s final

decision, direction or order within which such appeals or

applications may be made;

(c)   

requiring the Commission to inform persons of their right to

appeal or apply to the Tribunal following a final decision,

40

direction or order of the Commission;

 
 

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 2 — The Charity Tribunal

9

 

(d)   

specifying the manner in which appeals, applications or

references to the Tribunal are to be made.

(3)   

Rules under subsection (1)(b) above may, in particular, make

provision—

(a)   

for the President or a legal member of the Tribunal (see

5

paragraph 1(2)(b) of Schedule 1B to this Act) to determine

preliminary, interlocutory or ancillary matters;

(b)   

for matters to be determined without an oral hearing in

specified circumstances;

(c)   

for the Tribunal to deal with urgent cases expeditiously;

10

(d)   

about the disclosure of documents;

(e)   

about evidence;

(f)   

about the admission of members of the public to proceedings;

(g)   

about the representation of parties to proceedings;

(h)   

about the withdrawal of appeals, applications or references;

15

(i)   

about the recording and promulgation of decisions;

(j)   

about the award of costs.

(4)   

Rules under subsection (1)(a) or (b) above may confer a discretion on—

(a)   

the Tribunal,

(b)   

a member of the Tribunal, or

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(c)   

any other person.

(5)   

The Tribunal may award costs only in accordance with subsections (6)

and (7) below.

(6)   

If the Tribunal considers that any party to proceedings before it has

acted vexatiously, frivolously or unreasonably, the Tribunal may order

25

that party to pay to any other party to the proceedings the whole or part

of the costs incurred by that other party in connection with the

proceedings.

(7)   

If the Tribunal considers that a decision, direction or order of the

Commission which is the subject of proceedings before it was

30

unreasonable, the Tribunal may order the Commission to pay to any

other party to the proceedings the whole or part of the costs incurred

by that other party in connection with the proceedings.

(8)   

Rules of the Lord Chancellor under this section—

(a)   

shall be made by statutory instrument, and

35

(b)   

shall be subject to annulment in pursuance of a resolution of

either House of Parliament.

(9)   

Section 86(3) below applies in relation to rules of the Lord Chancellor

under this section as it applies in relation to regulations and orders of

the Secretary of State under this Act.

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2C      

Appeal from Tribunal

(1)   

A party to proceedings before the Tribunal may appeal to the High

Court against a decision of the Tribunal.

(2)   

Subject to subsection (3) below, an appeal may be brought under this

section against a decision of the Tribunal only on a point of law.

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Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 2 — The Charity Tribunal

10

 

(3)   

In the case of an appeal under this section against a decision of the

Tribunal which determines a question referred to it by the Commission

or the Attorney General, the High Court—

(a)   

shall consider afresh the question referred to the Tribunal, and

(b)   

may take into account evidence which was not available to the

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Tribunal.

(4)   

An appeal under this section may be brought only with the permission

of—

(a)   

the Tribunal, or

(b)   

if the Tribunal refuses permission, the High Court.

10

(5)   

For the purposes of subsection (1) above—

(a)   

the Commission and the Attorney General are to be treated as

parties to all proceedings before the Tribunal, and

(b)   

rules under section 2B(1) above may include provision as to

who else is to be treated as being (or not being) a party to

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proceedings before the Tribunal.

2D      

Intervention by Attorney General

(1)   

This section applies to any proceedings—

(a)   

before the Tribunal, or

(b)   

on an appeal from the Tribunal,

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to which the Attorney General is not a party.

(2)   

The Tribunal or, in the case of an appeal from the Tribunal, the court

may at any stage of the proceedings direct that all the necessary papers

in the proceedings be sent to the Attorney General.

(3)   

A direction under subsection (2) may be made by the Tribunal or

25

court—

(a)   

of its own motion, or

(b)   

on the application of any party to the proceedings.

(4)   

The Attorney General may—

(a)   

intervene in the proceedings in such manner as he thinks

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necessary or expedient, and

(b)   

argue before the Tribunal or court any question in relation to the

proceedings which the Tribunal or court considers it necessary

to have fully argued.

(5)   

Subsection (4) applies whether or not the Tribunal or court has given a

35

direction under subsection (2).”

(2)   

Schedule 3 (which inserts the new Schedule 1B into the 1993 Act) has effect.

(3)   

Schedule 4 (which inserts the new Schedules 1C and 1D into the 1993 Act) has

effect.

 
 

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 3 — Registration of charities

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Chapter 3

Registration of charities

General

9       

Registration of charities

For section 3 of the 1993 Act substitute—

5

“3      

Register of charities

(1)   

There shall continue to be a register of charities, which shall be kept by

the Commission.

(2)   

The register shall be kept by the Commission in such manner as it

thinks fit.

10

(3)   

The register shall contain—

(a)   

the name of every charity registered in accordance with section

3A below (registration), and

(b)   

such other particulars of, and such other information relating

to, every such charity as the Commission thinks fit.

15

(4)   

The Commission shall remove from the register—

(a)   

any institution which it no longer considers is a charity, and

(b)   

any charity which has ceased to exist or does not operate.

(5)   

If the removal of an institution under subsection (4)(a) above is due to

any change in its trusts, the removal shall take effect from the date of

20

that change.

(6)   

A charity which is for the time being registered under section 3A(6)

below (voluntary registration) shall be removed from the register if it

so requests.

(7)   

The register (including the entries cancelled when institutions are

25

removed from the register) shall be open to public inspection at all

reasonable times.

(8)   

Where any information contained in the register is not in documentary

form, subsection (7) above shall be construed as requiring the

information to be available for public inspection in legible form at all

30

reasonable times.

(9)   

If the Commission so determines, subsection (7) shall not apply to any

particular information contained in the register that is specified in the

determination.

(10)   

Copies (or particulars) of the trusts of any registered charity as supplied

35

to the Commission under section 3B below (applications for

registration etc.) shall, so long as the charity remains on the register—

(a)   

be kept by the Commission, and

(b)   

(subject to subsection (11)) be open to public inspection at all

reasonable times.

40

(11)   

Subsection (10)(b) does not apply—

 
 

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 3 — Registration of charities

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(a)   

in relation to any charities specified, or of a description

specified, in regulations made by the Secretary of State, or

(b)   

in such circumstances as are so specified.

3A      

Registration of charities

(1)   

Every charity must be registered in the register of charities unless

5

subsection (2) below applies to it.

(2)   

The following are not required to be registered—

(a)   

any exempt charity (see Schedule 2 to this Act);

(b)   

any charity which for the time being—

(i)   

is permanently or temporarily excepted by order of the

10

Commission, and

(ii)   

complies with any conditions of the exception,

   

and whose gross income does not exceed £100,000;

(c)   

any charity which for the time being—

(i)   

is, or is of a description, permanently or temporarily

15

excepted by regulations made by the Secretary of State,

and

(ii)   

complies with any conditions of the exception,

   

and whose gross income does not exceed £100,000; and

(d)   

any charity whose gross income does not exceed £5,000.

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(3)   

For the purposes of subsection (2)(b) above—

(a)   

any order made or having effect as if made by the Commission

under section 3(5)(b) of this Act (as originally enacted) and in

force immediately before the appointed day has effect as from

that day as if made under subsection (2)(b) (and may be varied

25

or revoked accordingly); and

(b)   

no order may be made under subsection (2)(b) so as to except on

or after the appointed day any charity that was not excepted

immediately before that day.

(4)   

For the purposes of subsection (2)(c) above—

30

(a)   

any regulations made or having effect as if made by the

Secretary of State under section 3(5)(b) of this Act (as originally

enacted) and in force immediately before the appointed day

have effect as from that day as if made under subsection (2)(c)

(and may be varied or revoked accordingly);

35

(b)   

such regulations shall be made under subsection (2)(c) as are

necessary to secure that all of the formerly specified institutions

are excepted under that provision (subject to compliance with

any conditions of the exception and the financial limit

mentioned in that provision); but

40

(c)   

otherwise no regulations may be made under subsection (2)(c)

so as to except on or after the appointed day any description of

charities that was not excepted immediately before that day.

(5)   

In subsection (4)(b) above “formerly specified institutions” means—

(a)   

any institution falling within section 3(5B)(a) or (b) of this Act as

45

in force immediately before the appointed day (certain

educational institutions); or

 
 

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 3 — Registration of charities

13

 

(b)   

any institution ceasing to be an exempt charity by virtue of

section 11 of the Charities Act 2006 or any order made under

that section.

(6)   

A charity within—

(a)   

subsection (2)(b) or (c) above, or

5

(b)   

subsection (2)(d) above,

   

must, if it so requests, be registered in the register of charities.

(7)   

The Secretary of State may by order amend—

(a)   

subsection (2)(b) and (c) above, or

(b)   

subsection (2)(d) above,

10

   

by substituting a different sum for the sum for the time being specified

there.

(8)   

The Secretary of State may only make an order under subsection (7)

above—

(a)   

so far as it amends subsection (2)(b) and (c), if he considers it

15

expedient to so with a view to reducing the scope of the

exception provided by those provisions;

(b)   

so far as it amends subsection (2)(d), if he considers it expedient

to do so in consequence of changes in the value of money or

with a view to extending the scope of the exception provided by

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that provision,

   

and no order may be made by him under subsection (7) unless a copy

of a report under section 73 of the Charities Act 2006 (report on

operation of that Act) has been laid before Parliament in accordance

with that section.

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(9)   

In this section “the appointed day” means the day appointed for the

coming into force of section 9 of the Charities Act 2006 (registration of

charities).

(10)   

In this section any reference to a charity’s “gross income” shall be

construed, in relation to a particular time—

30

(a)   

as a reference to the charity’s gross income in its financial year

immediately preceding that time, or

(b)   

if the Commission so determines, as a reference to the amount

which the Commission estimates to be the likely amount of the

charity’s gross income in such financial year of the charity as is

35

specified in the determination.

(11)   

The following provisions of this section—

(a)   

subsection (2)(b) and (c),

(b)   

subsections (3) to (5), and

(c)   

subsections (6)(a), (7)(a), (8)(a) and (9),

40

   

shall cease to have effect on such day as the Secretary of State may by

order appoint for the purposes of this subsection.

3B      

Duties of trustees in connection with registration

(1)   

Where a charity required to be registered by virtue of section 3A(1)

above is not registered, it is the duty of the charity trustees—

45

(a)   

to apply to the Commission for the charity to be registered, and

 
 

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 3 — Registration of charities

14

 

(b)   

to supply the Commission with the required documents and

information.

(2)   

The “required documents and information” are—

(a)   

copies of the charity’s trusts or (if they are not set out in any

extant document) particulars of them,

5

(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 may

require for the purposes of the application.

(3)   

Where an institution is for the time being registered, it is the duty of the

10

charity trustees (or the last charity trustees)—

(a)   

to notify the Commission if the institution ceases to exist, or if

there is any change in its trusts or in the particulars of it entered

in the register, and

(b)   

(so far as appropriate), to supply the Commission with

15

particulars of any such change and copies of any new trusts or

alterations of the trusts.

(4)   

Nothing in subsection (3) above requires a person—

(a)   

to supply the Commission with copies of schemes for the

administration of a charity made otherwise than by the court,

20

(b)   

to notify the Commission of any change made with respect to a

registered charity by such a scheme, or

(c)   

if he refers the Commission to a document or copy already in

the possession of the Commission, to supply a further copy of

the document.

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(5)   

Where a copy of a document relating to a registered charity—

(a)   

is not required to be supplied to the Commission as the result of

subsection (4) above, but

(b)   

is in the possession of the Commission,

   

a copy of the document shall (subject to section 3(11) above) be open to

30

inspection under section 3(10) above as if supplied to the Commission

under this section.”

10      

Interim changes in threshold for registration of small charities

(1)   

At any time before the commencement of section 9 above, the Secretary of State

may by order amend section 3 of the 1993 Act (the register of charities) so as

35

to—

(a)   

replace section 3(5)(c) (threshold for registration of small charities) with

a provision referring to a charity whose gross income does not exceed

such sum as is prescribed in the order, and

(b)   

define “gross income” for the purposes of that provision.

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(2)   

Subsection (1) does not affect the existing power under section 3(12) of that Act

to increase the financial limit specified in section 3(5)(c).

(3)   

This section ceases to have effect on the day on which section 9 above comes

into force.

 
 

 
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