Charity Commission consultation on trustee disqualification powers

The Charity Commission has launched a 3-month public consultation on its proposed approach to exercising the new power of discretionary disqualification of trustees, given it by Charities (Protection and Social Investment) Act 2016. The Commission has also published a policy paper which sets out the details of its proposed approach to using this power. In particular it is inviting comments on:

  • the factors that it will take into account when deciding whether the tests set out in the Charities Act have been met, and
  • its approach to deciding on the length of the disqualification

The factors that the Commission will take into account are set out in three tests, all of which have to be met for a disqualification order to be made. One of the tests includes the condition that the test will be met if a person is found by HMRC not to be a ‘fit and proper person’.

Responses should be made online, before 22 August 2016.

Once this power is implemented in July there may be cases where the Commission needs to use the power before this consultation has ended. The Commission’s proposed approach, as set out in the policy paper, will form the basis for any exercise of this power, pending any reconsideration of its approach after consultation.