Memorandum from Jonathan Dawson (DCH 74)
I comment on the draft Charities Bill as follows
by reference to the section number.
2 I understand that the charitable
activities described in the Recreational Charities Act 1958 were
deliberately not included in subsection (2) and so community centres,
village halls and similar bodies will continue to be charitable
under that Act. As I work closely with community centres, village
halls and their umbrella bodies, I would welcome official confirmation
that the 1958 Act will not be repealed.
2(2)(e) The advancement of citizenship and
community development. This is new and raises uncertainties. Section
2(3)(b) is helpful in explaining what charitable purpose (e) includes
but I feel that it should be expanded to include the promotion
of racial harmony and equality of opportunity.
7 This provides (in new s 3A(2)(d))
that charities with income not exceeding £5,000 do not have
to register. The existing requirement that an organisation that
uses or occupies land must register has been removed. I do not
know or understand why this has been done. This is very much a
village hall issue. I believe that it is important that village
halls with security of tenure should be required to register as
charities (whatever their gross income). Accordingly, I would
like to see the existing requirement as to use or occupation of
land (s3(5)(c) of the 1993 Act) stay.
26 I appreciate that much of the
detail relating to CIOs will be the subject of regulations. However,
I believe that the Bill should include two further specific constitutional
requirements:
(a) in new s69C, a provision
similar to s14 of the Companies Act 1985, namely that the CIO
constitution binds the CIO and its members to the same extent
as if they respectively had been signed by each member, and contained
covenants on the part of each member to observe all the provisions
of the constitution.
(b) in new s69M, provisions
similar to ss15 and 263 of the Companies Act 1985 stating that
any provision in the constitution or any resolution of the CIO
to give any person a right to participate in distribution of profits
or assets is void.
These are, I believe, important points of principle
that should not be left to regulations.
Additionally, I believe that a definition of
"member" should be included. New Schedule 5A paragraph
9 states that it is the duty of each member of a CIO (as well
as each trustee) to perform his functions in good faith in such
a way as he decides would be most likely to further the purposes
of the CIO. As this is a specific duty placed on members, it is
essential that this duty arises at a defined point in time, eg
as in the case of a company, when the name of the member is entered
on the register of members.
June 2004
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