This material will shortly be available at our web-site (www.russell-cooke.co.uk) together with an archive of past updates.
GOVERNANCE – PUBLIC BENEFIT
Public benefit test begins to bite
The Public benefit test - Has it created its first victim?
Salisbury NHS Foundation Trust wanted to set up a charity to carry out the work within their area for private patients. The Commission refused registration on the basis that health treatment would not be available to the public at large but only to those with the ability to pay fees. Illustrated fees range from £661 for a colonoscopy to over £8,000 for a knee replacement. The review commented that such sums were out of reach of the poor and there was no prospect of fees being waived for those who could not afford it.
The dual test that is now applied to all charities is they have to be able to show that they exclusively:
(a) Pursue a charitable object
(b) And do so in a way that is for the public benefit
It seems likely that there may be a review of this decision by the courts, but it shows that the Commission is serious about applying the public benefit test to a situation where charges by the charity effectively exclude significant sections of the public from benefit.
Decision:
http://www.charity-commission.gov.uk/Library/registration pdfs/odstockdecision.pdf
The General Benefit Public Benefit Guidance is also available on the Commission website.
For further information please contact:
JAMES SINCLAIR TAYLOR on 020 8394 6480, James.Sinclairtaylor@russell-cooke.co.uk
PROPERTY – AUTHORISED USE
Authorised Use of Property under Planning Law
The case of M & M (Land) Limited -v- Secretary of State of Communities and Local Government is a reminder that confirming the authorised use for a particular property under planning law can be a difficult question.
The case in particular involves a property where there was a certificate of lawful use. Such a certificate authorises a use for planning purposes, in the absence of an appropriate planning permission, where a property has been used for a particular purpose for an unbroken period of 10 years, or of 4 years in the case of development works or use for residential purposes.
The case held that notwithstanding the existence of such a certificate, if the use that it authorised was effectively abandoned, then the certificate would no longer have effect and the land would require a planning permission in order to authorise any use.
In fact, even where there is a planning permission, if the use authorised under the planning permission has been abandoned, then there will be no authorised use and a planning permission will be required for any further use.
This can be important where charities are acquiring premises. If there appears to be a planning permission authorising what the charity wants to do at the property, that is not conclusive. If the property has been used for a purpose not authorised by that planning permission after the planning permission was granted, then there is a possibility that the authorised use could be regarded as having been abandoned, and the charity will require a new planning permission in order to use the property.
In fact, charities should also be aware that the fact that a planning permission has been granted does not necessarily mean that it has ever come into effect. If the authorised use has not been carried out within the time limit required by the planning permission (commonly 5 years), the planning permission will in fact have lapsed, without ever becoming effective.
It is essential therefore to raise enquiries of the seller or landlord, or their solicitors, regarding previous use of the property as well as carrying out local searches and enquiries of the planning authority.
M & M (Land) Limited -v- Secretary of State of Communities and Local Government [2007] All ER D 55
For further information, please contact:
JAMES McCALLUM on 020 8394 6481, James.McCallum@russell-cooke.co.uk
CHARITIES ACT 2006 – COMMENCEMENT TIMETABLE
The third order commencing provisions of the Charities Act 2006 has been made, bringing a number of provisions into force on 18 March 2008. The provisions commenced by this order are:
- The Charity Tribunal
- A new power enabling the remuneration of trustees for providing (non-trustee) services to their charity if certain criteria are met
- Charity Commission power to remove trustees or employees from charity membership
- Charity Commission powers to give directions to protect a charity or require its proerty to be used in a certain way
- Fewer situations where Charity Commission consent is required for a charitable company to amend its memorandum and articles
- Easier for unincorporated charities with annual income under £10,000 to amend their objects
- Power for some unincorporated charities with annual income under £10,000 to transfer all property to another charity or charities.
- Power for unincorporated charities to spend capital (permanent endowment) in some situations
- Modernised rules for cy pres schemes
Fourth Commencement Order
A fourth commencement Order is expected shortly to bring into force the following provisions from 1 April 2008:
- The definition of charity, including the public benefit requirement, and associated provisions
- The statutory requirement to prepare group accounts, and some other changes to auditing, accounting and reporting requirements.
For further information please contact:
JAMES SINCLAIR TAYLOR on 020 8394 6480, James.Sinclairtaylor@russell-cooke.co.uk
EVENTS
Programme of Evening Seminars 2007/2008
Tuesday 22 April 2008
THE ROLE OF THE COMPANY SECRETARY
This is a session for company secretaries, trustees of charitable companies, and anyone else involved in the administration of a charitable company. The seminar will consider the impact of the Companies Act 2006 on the company secretary’s duties and will include guidance on:
> Understanding the legal structure of your organisation
> Preparing for and calling general meetings
> Passing member’s resolutions
> Proxy voting
> Company registers and records
> Fillings with Company’s House and the Charity Commission
> Electronic communications with members.
Wednesday 14 May 2008
INTRODUCTION TO EMPLOYMENT LAW: HOW TO REDUCE RISK
Employment disputes can amount to a substantial drain on an organisation’s resources. This session will provide an overview of the employment relationship and will highlight particular areas of risk and measures that organisations can take to protect themselves from claims.
For booking information please contact Janev Djemil on 020 8394 6372. Janev.Djemil@russell-cooke.co.uk
OTHER EVENTS
The Trustee Conference 2008 – Thursday 26 June 2008
THE ANNUAL CONFERENCE FOR CHARITY TRUSTEES
Bringing together leading figures and specialist advisers in the charity world, the conference aims to help trustees and senior managers develop the skills and confidence needed to govern effectively in a fast evolving environment and address the challenges along the way.
For more details and for booking information please follow this link http://www.russell-cooke.co.uk/serv_c&o_charities_events.htm
The Employment Law Conference – Thursday 9 October 2008
THE RUSSELL-COOKE EMPLOYMENT LAW CONFERENCE FOR CHARITIES AND VOLUNTARY ORGANISATIONS
This one- day conference is aimed at Chief Executives, Human Resources Manager, Senior Managers and Trustees of voluntary organisations who need to keep abreast of changes in employment law to ensure compliance with legal developments and good practice. Experienced lawyers from Russell-Cooke’s Charity Team and other leading professionals will update delegates on developments in the law and explore the challenges faced by employers in the sector.
For more information or to register for the conference please contact Janev Djemil on 020 8394 6372. Janev.Djemil@russell-cooke.co.uk
The Charity Team
Russell-Cooke Solicitors, 2 Putney Hill,
Putney, LONDON
SW15 6AB
Tel: 020 8789 9111
www.russell-cooke.co.uk
This material does not give a full statement of the law. It is intended for guidance only, and is not a substitute for professional advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting can be accepted by Russell-Cooke.
Copyright: Russell-Cooke, March 2008
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