New rules on automatic disqualification of charity trustees and senior managers – is your charity prepared?

The new rules on automatic disqualification are coming into force on 1 August 2018.  They affect both charity trustees and charity senior managers.

Sectors
Charities
Type
Update

Charity trustees

From 1 August, the list of circumstances in which an individual is automatically disqualified from acting as a charity trustee is expanded significantly to include matters such as unspent convictions for bribery, terrorism and money laundering and certain other circumstances such as contempt of court and being on the sex offenders register.

Charities should ensure that they are checking whether new and existing trustees are disqualified.  The Charity Commission has produced a sample declaration for trustees to sign, which covers the new circumstances – and is designed to be used in conjunction with the Commission’s existing trustee declaration form. 

Charity senior managers

From 1 August anyone who is automatically disqualified from acting as a charity trustee will also be disqualified from acting as a senior manager in a charity.   

Charities should identify which posts in their charity are relevant senior manager posts (this is covered in Charity Commission guidance) and should check whether existing and prospective senior managers are affected.  The Charity Commission has produced a sample declaration for senior managers.  It may be necessary to take employment law advice if it becomes necessary to terminate an existing contractual relationship with a senior manager.

Waiver

It is possible to apply for a waiver from disqualification in advance of 1 August.

Guidance

The Charity Commission has published guidance for charities (which includes the sample declarations for trustees and senior managers), guidance for trustees and senior managers, and guidance on the waiver process.

Please contact Lucy Mclynn, Thea Longley or your usual BWB contact for more information or advice.  


All content on this page is correct as of June 4, 2018.