DCH 95 Community Matters
Community Matters, 12-20 Baron St,
London N1 9LL. Tel 020 7837 7887
We comment on the draft Charities Bill
as follows by reference to the section number.
2 We 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. However, we 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that the 1958 Act will not be repealed.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 we feel that it should be expanded to include
the promotion of racial harmony and equality of opportunity.
26 We appreciate that much of the detail
relating to CIOs will be the subject of regulations. However,
we believe that Bill should include two further specific constitutional
requirements:
(a) in new s.69C, a provision similar
to s.14 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 s.69M, provisions similar
to ss.15 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, we believe, important points
of principle that should not be left to regulations.
Additionally, we 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, e.g. as in the case of
a company, when the name of the member is entered on the register
of members.
David Tyler
National Director, Community Matters
David.tyler@communitymatters.org.uk
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