Charities (Protection and Social Investment) Act 2016
Before section 76 of the Charities Act 2011, after the heading “Powers of Commission to act for protection of charities etc” insert—
Section 76 of the Charities Act 2011 (suspension of trustees etc and appointment of interim managers) is amended as follows.
In subsection (1)(a), for “any” substitute “ a failure to comply with an order or direction of the Commission, a failure to remedy any breach specified in a warning under section 75A, or any other ”.
In subsection (4), at the end insert “ , subject to any extension under subsection (7) ”.
At the end add—
After section 76 of the Charities Act 2011 insert—
The Charities Act 2011 is amended as follows.
For section 79 (Commission's power to remove trustees etc following an inquiry) substitute—
In section 83(3) (power to suspend or remove trustees etc from membership of charity)—
for “79(2)” substitute “ 79(4) ”;
for “an officer,” substitute “ a trustee, charity trustee, officer, ”.
In section 87(1) (supervision by Commission of certain Scottish charities), for “79(2)(b)” substitute “ 79(1) and (2) ”.
In section 178(1) (automatic disqualification of charity trustees), in Case D for “79(2)(a)” substitute “ 79(4) ”.
In Schedule 6 (appeals to tribunals), in the entry relating to an order made by the Commission under section 79(2) in relation to a charity—
in column 1, after “79(2)” insert “ or (4) ”;
in column 2, for “79(2)(a)” substitute “ 79(4) ”.
The Charities Act 2011 is amended as follows.
After section 79 insert—
In section 82(1) (removal of trustees etc: notice), after “79” insert “ , 79A ”.
In section 89(1) (orders relating to trustees etc: exceptions to publicity requirement), after paragraph (b) insert,or .
In section 89(5) (notice inviting representations on order to remove), after “an order under this Act” insert “ , other than an order under section 79A, ”.
The Charities Act 2011 is amended as follows.
After section 84 insert—
In section 20 (incidental powers), in subsection (3) after “84” insert “ , 84A ”.
In section 86(2) (copy of certain orders, and reasons, to be sent to charity) and section 336(2)(a) (enforcement of orders of Commission) insert in the appropriate place— “ section 84A (power to direct specified action not to be taken), ”.
Order made by the Commission under section 84A(2) which directs a person not to take action specified in the order. The persons are any person who is directed by the order not to take the specified action. Power to quash the order and (if appropriate) remit the matter to the Commission.
The Charities Act 2011 is amended as follows.
Before section 85 insert—
In section 20 (incidental powers), in subsection (3) before “or 85” insert “ , 84B ”.
In section 86(2) (copy of certain orders, and reasons, to be sent to charity) and section 336(2)(a) (enforcement of orders of Commission) insert in the appropriate place— “ section 84B (power to direct winding up), ”.
Order made by the Commission under section 84B(2) which directs a person to take action specified in the order. The persons are any person who is directed by the order to take the specified action. Power to quash the order and (if appropriate) remit the matter to the Commission. Order made by the Commission under section 84B(2) which directs a person to do anything that could otherwise only be done by the members of the charity or any of them. The persons are the member or members concerned. Power to quash the order and (if appropriate) remit the matter to the Commission.
Section 85 of the Charities Act 2011 (power to direct application of charity property where person is unwilling) is amended as follows.
In subsection (1)(a), after “unwilling” insert “ or unable ”.
After subsection (5) insert—
The Charities Act 2011 is amended as follows.
Section 178 (persons disqualified from being charity trustees or trustees for a charity) is amended as follows.
In subsection (1), in Case A, for “of any offence involving dishonesty or deception.” substituteof—
In Case D—
for “from the office of charity trustee or trustee for a charity” substitute “ as a trustee, charity trustee, officer, agent or employee of a charity ”;
for “to which P was privy,” substitute “ which P knew of and failed to take any reasonable step to oppose, ”.
Case H P has been found to be in contempt of court under Civil Procedure Rules for— Case I P has been found guilty of disobedience to an order or direction of the Commission on an application to the High Court under section 336(1). Case J P is a designated person for the purposes of— Case K P is subject to the notification requirements of Part 2 of the Sexual Offences Act 2003.
After subsection (2) insert—
After section 178 insert—
Section 179 (disqualification: pre-commencement events etc) is amended as follows.
In subsection (1), after “178(1)” insert “ or section 178A or any amendment of that section ”.
At the end add—
Section 181 (waiver of disqualification) is amended as follows.
After subsection (2) insert—
In subsection (3) (presumption for waiver after 5 years) for “or E” substitute “ , E or I ”.
In section 183 (criminal consequences of acting while disqualified), in subsection (1)—
after “for a charity” insert “ or to hold an office or employment ”;
after “such a trustee” insert “ or from holding that office or employment ”.
Section 184 (civil consequences of acting while disqualified) is amended as follows.
In subsections (1) and (2)(a)—
after “for a charity” insert “ or as officer or employee of a charity ”, and
after “such a trustee” insert “ or from holding that office or employment ”.
In subsection (2)(b) after “for the charity” insert “ or holding the office or employment ”.
Section 348 (regulations subject to affirmative procedure etc) is amended as follows.
In subsection (1), after paragraph (b) insert—.
In subsection (2) after “(1)(a)” insert “ , (ba) ”.
In subsection (4) after “regulations under—” insert—.
The Charities Act 2011 is amended as follows.
After section 181 insert—
In section 183 (criminal consequences of acting while disqualified)—
in subsection (1), after “section 178” insert “ or an order under section 181A ”;
in subsection (2)(b), after “G” insert “ in section 178 ”.
In section 184 (civil consequences of acting while disqualified)—
in subsection (1), after “section 178” insert “ or an order under section 181A ”;
in subsection (2)(a), after “section 178” insert “ or an order under section 181A. ”
Section 348 (regulations subject to affirmative procedure etc) is amended as follows.
In subsection (1), before paragraph (c) insert—.
In subsection (2) before “or (c)” insert “ , (bb) ”.
In subsection (4) before paragraph (a) insert—.
Order made by the Commission under section 181A. The persons are the person who is the subject of the order. Power to— quash the order in whole or in part and (if appropriate) remit the matter to the Commission; substitute for all or part of the order any other order which could have been made by the Commission; add to the order anything which could have been contained in an order made by the Commission. Order made by the Commission under section 181B(4). The persons are the person who is the subject of the order. Power to— quash the order in whole or in part and (if appropriate) remit the matter to the Commission; substitute for all or part of the order any other order which could have been made by the Commission; add to the order anything which could have been contained in an order made by the Commission. Decision of the Commission— to discharge an order following a review under section 181B(7), or not to discharge an order following such a review. The persons are— the person who is the subject of the order, the charity trustees of the charity to which the order relates, (if a body corporate) the charity itself, and any other person who is or may be affected by the order. Power to— quash the decision and (if appropriate) remit the matter to the Commission; make the discharge of the order subject to savings or other transitional provisions; remove any savings or other transitional provisions to which the discharge of the order was subject; discharge the order in whole or in part (whether subject to any savings or other transitional provisions or not). Decision of the Commission under section 181D not to revoke or vary an order under section 181A. The persons are the person who is the subject of the order. Power to— quash the decision and (if appropriate) remit the matter to the Commission; substitute for the decision any other decision of a kind which could have been made by the Commission.
Section 182 of the Charities Act 2011 (records of persons removed from office) is amended as follows.
In subsection (1)—
for “181” substitute “ 181A ”;
after “a register of” insert, “ the following. ”
The words in subsection (1) from “all persons” to the end become subsection (1A).
At the beginning of that subsection insert—.
After subsection (1A) insert—
In the Charities Act 2011, after section 184 insert—
Section 59 of the Charities Act 1992 (prohibition on certain fund-raising without agreement in prescribed form), is amended as follows.
In subsection (6) for “such requirements” substitute “ the requirement in subsection (7) and such other requirements (including any requirements supplementing subsections (7) and (8)) ”.
After that subsection insert—
In the Charities Act 2011, after section 162 insert—
The Charities Act 1992 is amended as follows.
In Part 2, after section 64A (reserve power to control fund-raising by charitable institutions) insert—
In Part 2, after section 64B insert—
In section 64A(2) after “this section” insert “ and sections 64B and 64C ”.
In section 77(4) (regulations and orders) at the end insert “ and, in the case of regulations made by virtue of section 64B or 64C, shall in particular consult the Charity Commission. ”
In the Charities Act 2011, after section 292 insert—
The Trustee Act 2000 is amended as follows.
In section 4 (standard investment criteria), after subsection (3) insert—
In section 5 (advice), after subsection (4) insert—
The Secretary of State must carry out reviews of the operation of this Act including, on each review, how the Act affects—
public confidence in charities,
the level of charitable donations, and
people's willingness to volunteer.
After each review the Secretary of State must publish a report of the review and lay a copy before Parliament.
The reports must be published not more than 5 years apart.
The first review must begin within 3 years after this Act is passed, and the report of that review must be published within 4 years after this Act is passed.
This Act may be cited as the Charities (Protection and Social Investment) Act 2016.
This Act extends to England and Wales only.
This section and section 16 come into force on the day on which this Act is passed.
The other provisions of this Act come into force on whatever day the Secretary of State appoints by regulations made by statutory instrument.
The regulations—
may appoint different days for different purposes;
may make transitional, transitory or saving provision.