Records of disqualification and removal

Part of Charities (Protection and Social Investment) Bill [Lords] – in a Public Bill Committee at 7:00 pm on 5 January 2016.

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Photo of Rob Wilson Rob Wilson The Parliamentary Secretary, Cabinet Office 7:00, 5 January 2016

The provision is relatively straightforward and I hope to be able to provide the Committee with a quick and short explanation.

Trustees do not need to be natural persons; they can be legal persons. That means it is possible for a corporate body to be a trustee of a charity. This gives rise to a loophole relating to disqualified trustees. As the law currently stands, a disqualified trustee is not prevented from acting as an officer of a corporate body—where that corporate body is a charity trustee—and participating in decisions about the management and administration of the charity. This can potentially be used to circumvent disqualification. Clause 13 enables us to put this matter right. It prohibits disqualified individuals from participating in decisions about the administration of a charity where they are an officer of a corporate body and that corporate body is a charity trustee. It also extends the civil and criminal sanctions that apply where a disqualified individual acts as a trustee. It is a common-sense provision and I commend it to the Committee.