Dormant bank account where funds were promised to charity 26 February 2019 at 9:29PM in Charities 7 replies 3.5K views

JosephHumpoletz

I've just taken over as Treasurer for my local scout group (we'll call it 'A'). My first task is a real headache and I need some advice to see if anyone has been in a similar situation.
Here's the background:
In 2009 Scout Group B merged with Scout Group A due to low numbers and financial difficulties. It was agreed that the Group B's funds would be passed to Group A - this never happened and we are now 10 years down the line.
There are two signatories for Group B's Barclays bank account, 1 has moved away and the other we have a telephone number for but have had no answer yet so we have been unable to get them involved. I approached Barclays today to see if our minutes were proof enough for the transfer or whether they had details for the signatories but they couldn't help in-store. They gave me the Mandate Team's number who were less than unhelpful. They couldn't find an account under the details I gave so I'm assuming it's gone dormant. I was then given the number for the governments Treasury Solicitors but as we're a charity and not a limited company, they can't help either.
Is there any advice or thoughts on the matter?

tacpot12

Your minutes should not be sufficient for Barclays to discuss their customer's (Group B's) accounts with you. They will need the resolution from Group B's governing body to merge with you. If you can get the correct account details from the Group B contacts, you might persuade Barclays to tell you if it is worth getting a resolution sent to them (i.e. Is there any money in the account). I suspect the account is empty.

Grey_Critic

Contact BP house and ask for their help.

badmemory

They were in financial difficulties what, 10 years ago, someone has already trousered whatever small amount was in there & will be listed as expenses/postage/phone calls etc.

JosephHumpoletz

I have finally got through to one of the signatories who is happy to sign a letter directing Barclays to transfer the funds. We can't contact the other signatory though as he has moved away. Will Barclays accept a directive from just one signatory, given the circumstances?
P.s. The signatory is not aware of the account ever been emptied so I don't think it's been stolen - possibly a naïve outlook.

Savvy_Sue

JosephHumpoletz wrote: »

I have finally got through to one of the signatories who is happy to sign a letter directing Barclays to transfer the funds. We can't contact the other signatory though as he has moved away. Will Barclays accept a directive from just one signatory, given the circumstances?

Impossible to know: if the account can be traced, AND you can produce a minuted decision of the B group to transfer the funds to the A group, AND the traceable signatory confirms that although the decision was made it was not acted upon but should be dealt with now, you should be on firm ground.

But as you can see, there's a few IF clauses in there. And it would not be unreasonable (IMO) of Barclays to insist on the second signatory. I know they've moved away, but does that make them untraceable? All you're asking for is a signature: googling their name might even be enough to track them down.

jonesMUFCforever

IMO it will depend on the mandate that Barclays hold.
If it states any one out of say 2 or 3 signatories it should be ok once the dormancy issue have been resolved.
If the mandate says at least 2 must sign then 2 must sign unless you can get a Business Manager at Barclays to overrule this. This will not be easy as nobody will want to know! (I had this issue with another high street bank).

Grey_Critic

You do need to contact Baden-Powell house about this. When a group closes then it is de-registered and the assetts have to be accounted for. Whilst they may have been transferred (not unusual when groups close/merge) should there be any problems on release of funds they will be able to help. You also need to consider that a Scout Group is also subject to Charity Commisoners oversight. I am a former Scout leader and DC and have been involved in closure of groups and assetts.