Charity and social enterprise update: trustees in the spotlight

The recent Kids Company case – in which the Official Receiver challenged the actions of the trustees and CEO of insolvent charitable company Kids Company – shone a very public spotlight on the position of charity trustees and senior managers.

The High Court dismissed the Official Receiver’s bid to disqualify the former trustees and CEO from serving as company directors. But what lessons does the case hold for the sector? And how can charities meet some of the challenges faced by their trustees today?

This update covers:

  • The broad impact of the case on charity trustees
  • The implications of the case for CEOs, and how they can avoid being seen as ‘de facto’ directors
  • The principles of effective delegation
  • A useful guide to trustee induction
  • Removing a trustee from a board
  • Resilience and wellbeing for boards
  • Trustee liability
  • The potential protections of indemnity insurance cover

Click here to read our Charity and social enterprise update: trustees in the spotlight

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This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.

All content on this page is correct as of May 17, 2021.