Joint Committee on the Draft Charities Bill Written Evidence


DCH 74 Jonathan Dawson

From: Jonathan Dawson [jonathan.dawson@virgin.net]Sent: 17 June 2004 12:18To: scrutiny@parliament.ukSubject: Charities Bill

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centres, village halls and their umbrella bodies, I would welcome official confirmation that the 1958 Act will not be repealed.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 £5000 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 (s.3(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 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, 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, e.g. as in the case of a company, when the name of the member is entered on the register of members.

 

J F Dawson MA LL.B

Solicitor

34 Tilsworth Road

Beaconsfield

Bucks HP9 1TP

Tel. & fax: 01494 670566

E-mail: jonathan.dawson@virgin.net


 
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