Trustees

SunshineBear

I'm aware that a Bankrupt cant be a trustee of a charity. How does it work for someone with an IVA?

SunshineBear

Found out the answer is: No you cant unless you get a waiver of disqualification and set forth a case to the charities commission with the backing of the whole board of trustees.

Damn!

Thats another 10 people that will know unless I resign. :(

SunshineBear

Guess I should wait till after the creditors meeting as it not a given that they will agree.

SunshineBear

Cut and paste from Charities Commission site:


Legal requirement




Some people are disqualified by law from acting as trustees, including anyone described in section 72(1) of the Charities Act 1993. This includes individuals who:

• have been convicted of any offence involving dishonesty or deception which is ‘unspent’;
• are undischarged bankrupts;
• have made an arrangement with creditors and have not been discharged (this will include an Individual Voluntary Arrangement (IVA));
• have been removed from the office of charity trustee by an order made by the Commission or the High Court;
• are subject to a disqualification order under the Company Directors Disqualification Act 1986 or to an order made under section 429(2)(b) of the Insolvency Act 1986.

Cut and Paste for conditions for granting a waiver

The following is a checklist (not an exhaustive one) of factors we will take into account when considering a case where a waiver of disqualification is being requested. In the first place we shall need to establish whether the governing document of the charity otherwise contains provisions disqualifying or determining trusteeship in any of the circumstances covered by the statutory disqualification, because waiver would extend only to the statutory provision: it would not override the trust provisions. Following this, these factors will be considered.


(a)In relation to a conviction, the specific nature of the offence in respect of which the disqualification arises.

(b)The gravity of the offence and the sentence passed by the Court.

(c)The circumstances and seriousness of the bankruptcy or composition or the circumstances of any removal by the Court or the Commission as the case may be.

(d)The nature of the trust property, for instance: whether it consists only of land used for the purposes of the charity; or whether there are investments and money which would or might pass through the trustee’s own hands.

(e)The degree of risk to the funds or property of any charity concerned if the person returns to office. Factors which may be relevant are: whether the applicant is likely to receive or have custody of charitable funds or property; and the applicant’s personal circumstances.

(f)Whether, in the case of a relevant offence or bankruptcy or composition with creditors, the nature and extent of any misconduct relating to the administration of any charity would itself warrant removal from office as a trustee.

(g)Whether and, if so, how seriously, the reputation of charity in general or of a particular charity would be damaged by the grant of a waiver.

(h)Where relevant, the purposes and interests of the charity or class of charity, for instance, the rehabilitation of offenders through charitable works.

(i)Whether the applicant is prohibited from acting as a director of any company by a disqualification order under the Company Directors Disqualification Act 1986; and if so, whether leave has been granted under that Act for him or her to act as a director of any other company. Also whether the applicant is similarly disqualified as a result of proceedings under the Insolvency Act 1986.

(j)If a disqualification order as in
(i) above has not been made in circumstances where the applicant has been convicted of a criminal offence involving dishonesty or deception in the course of company administration, the reason why no such order was made.

(k)Whether the applicant has ever been associated with any other charity which has been the subject of a formal Charity Commission inquiry as a result of which a report critical of the applicant’s involvement has been made.

(l)The view of the other trustees of the charity or charities concerned, especially as to any particular benefit to the charity or charities it is considered would result from the applicant acting as a trustee.

(m)The length of time that has elapsed since the events giving rise to the disqualification.

(n)Evidence of "good conduct" in the meantime and why it is considered that there is no risk of history repeating itself.

(o)Whether or not the waiver sought is a specific waiver in relation to a charity or charities or a general waiver in respect of all charities.

SunshineBear

Had a meeting with the Chairman and secretary last night. They had phoned the charity for advice.

In brief they suggested I didn't bother with being a trustee but continued with the good work I am already doing. The only restriction would be voting on financial matters. I can still be in the room and discuss but not vote. So thats fine with me as I dont have much to do with finacial anyway. ie. I dont sign cheques or have money pass through my hands. I have done the audit for the past 3 years so will stop that.

Very supportive. Getting the other trustees to sign off on this we were informed would be a formality. Dont have to go into detail with them just give basic issue.

Any breach of confidentiality would be dealt with.

The chairman kept saying how sorry he was for us. Nothing to worry about for me. Maybe draw back a bit and let others do more so that I can give myself more time though.