Charities Act 2006 (c. 50)

(The document as of February, 2008)

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(a) for "the Commissioners" substitute "the Commission", and

(b) for "them to discharge their functions" substitute "the Commission to discharge its functions".

(6) In subsection (8)(a) for "the Commissioners are informed" substitute "the Commission is informed".

(7) In subsection (9)--

(a) for "the Commissioners have" substitute "the Commission has", and

(b) for "the Commissioners" (in the second place) substitute "the Commission".

122 (1) Section 30 (powers for preservation of charity documents) is amended as follows.

(2) In subsection (1) for "The Commissioners" substitute "The Commission".

(3) In subsection (2) for "Commissioners" (in each place) substitute "Commission".

(4) In subsection (3)--

(a) for "the Commissioners" (in the first place) substitute "the Commission",

(b) for "with them" substitute "with the Commission",

(c) for "officer of the Commissioners generally or specially authorised by them" substitute "member of the staff of the Commission generally or specially authorised by the Commission".

(5) In subsection (4) for "the Commissioners" substitute "the Commission".

(6) In subsection (5)--

(a) for "the Commissioners" substitute "the Commission",

(b) for "by them" substitute "by the Commission", and

123 (1) Section 31 (power to order taxation of solicitor's bill) is amended as follows.

(2) In subsection (1) for "The Commissioners" substitute "The Commission".

(3) In subsection (3) for "the Commissioners are" substitute "the Commission is".

124 (1) Section 32 (proceedings by Commissioners) is amended as follows.

(2) In subsections (1) and (3) for "the Commissioners" substitute "the Commission".

(3) In subsection (5)--

(a) for "the Commissioners" substitute "the Commission", and

(b) for "by them of their own" substitute "by the Commission of its own".

(4) In the sidenote, for "Commissioners" substitute "Commission".

125 (1) Section 33 (proceedings by other persons) is amended as follows.

(2) In subsection (2) for "the Commissioners" substitute "the Commission".

(3) In subsection (3)--

(a) for "The Commissioners" substitute "The Commission",

(b) for "their opinion" substitute "its opinion", and

(4) In subsections (5) and (6) for "the Commissioners" substitute "the Commission".

(5) In subsection (7)--

(a) for "the Commissioners" (in both places) substitute "the Commission", and

(b) for "they think" substitute "the Commission thinks".

126 In section 34 (report of inquiry to be evidence in certain proceedings), in subsections (1) and (2), for "the Commissioners" substitute "the Commission".

127 In section 35(1) (application of certain provisions to trust corporations) for "the Commissioners" substitute "the Commission".

128 (1) Section 36 (restrictions on dispositions) is amended as follows.

(2) In subsection (1)--

(a) for "sold" substitute "conveyed, transferred", and

(b) for "the Commissioners" substitute "the Commission".

(3) In subsection (3) after "subsection (5) below," insert "the requirements mentioned in subsection (2)(b) above are that".

(4) In subsection (5) after "consideration of a fine)," insert "the requirements mentioned in subsection (2)(b) above are that".

(5) In subsection (6)--

(a) for "sold" substitute "conveyed, transferred", and

(b) for "previously" substitute "before the relevant time".

(6) After subsection (6) insert--

" (6A) In subsection (6) above "the relevant time" means--

(a) where the charity trustees enter into an agreement for the sale, or (as the case may be) for the lease or other disposition, the time when they enter into that agreement, and

(b) in any other case, the time of the disposition. "

(7) In subsection (8)--

(a) for "The Commissioners" substitute "The Commission",

(b) for "the Commissioners are satisfied" substitute "the Commission is satisfied", and

129 In section 37 (supplementary provisions relating to dispositions), in subsections (2) and (4)--

(a) for "sold" substitute "conveyed, transferred", and

(b) for "the Commissioners" substitute "the Commission".

130 In section 38(1) (restrictions on mortgaging) for "the Commissioners" substitute "the Commission".

131 (1) Section 39 (supplementary provisions relating to mortgaging) is amended as follows.

(2) In subsections (2)(a) and (4) for "the Commissioners" substitute "the Commission".

(3) After subsection (4) insert--

" (4A) Where subsection (3D) of section 38 above applies to any mortgage of land held by or in trust for a charity, the charity trustees shall certify in relation to any transaction falling within that subsection that they have obtained and considered such advice as is mentioned in that subsection.

(4B) Where subsection (4A) above has been complied with in relation to any transaction, then, in favour of a person who (whether under the mortgage or afterwards) has acquired or acquires an interest in the land for money or money's worth, it shall be conclusively presumed that the facts were as stated in the certificate. "

132 In section 41(4) (obligation to preserve accounting records) for "the Commissioners consent" substitute "the Commission consents".

133 (1) Section 42 (annual statements of accounts) is amended as follows.

(2) After subsection (2) insert--

" (2A) Such regulations may, however, not impose on the charity trustees of a charity that is a charitable trust created by any person ("the settlor") any requirement to disclose, in any statement of accounts prepared by them under subsection (1) --

(a) the identities of recipients of grants made out of the funds of the charity, or

(b) the amounts of any individual grants so made,

if the disclosure would fall to be made at a time when the settlor or any spouse or civil partner of his was still alive. "

(3) After subsection (7) add--

" (8) Provisions about the preparation of accounts in respect of groups consisting of certain charities and their subsidiary undertakings, and about other matters relating to such groups, are contained in Schedule 5A to this Act (see section 49A below). "

134 (1) Section 43 (annual audit or examination of charity accounts) is amended as follows.

(2) In subsection (4) for "the Commissioners" (in both places) substitute "the Commission".

(3) In subsection (5)--

(a) for "the Commissioners make" substitute "the Commission makes", and

(b) for "the Commissioners" (in the second place) substitute "the Commission".

(4) In subsection (6) for "the Commissioners" (in each place) substitute "the Commission".

(5) In subsection (7)--

(a) for "The Commissioners" substitute "The Commission", and

(b) for "they think" substitute "it thinks".

135 (1) Section 43A (annual audit or examination of English NHS charity accounts) is amended as follows.

(2) In subsection (2) for "the criterion set out in subsection (1) of section 43 is met in respect of" substitute "paragraph (a) or (b) of section 43(1) is satisfied in relation to".

(3) In subsection (5)--

(a) for "The Commissioners" substitute "The Commission", and

(b) for "they think" substitute "it thinks".

136 (1) Section 43B (annual audit or examination of Welsh NHS charity accounts) is amended as follows.

(2) In subsection (2) for "the criterion set out in subsection (1) of section 43 is met in respect of" substitute "paragraph (a) or (b) of section 43(1) is satisfied in relation to".

(3) After subsection (4) add--

" (5) References in this Act to an auditor or an examiner have effect in relation to this section as references to the Auditor General for Wales acting under this section as an auditor or examiner. "

137 (1) Section 44 (supplementary provisions relating to audits) is amended as follows.

(2) In subsection (1)--

(a) in paragraph (b) after "section 43" insert ", 43A or 43B",

(b) for paragraph (c) substitute--

" (c) with respect to the making of a report--

(i) by an independent examiner in respect of an examination carried out by him under section 43 above; or

(ii) by an examiner in respect of an examination carried out by him under section 43A or 43B above; "

(d) in paragraph (f) for "the Commissioners" substitute "the Commission".

(3) In subsection (2)--

(a) after "independent examiner" insert "or examiner",

(b) for "the Commissioners" (in the first place) substitute "the Commission", and

(4) Omit subsection (3).

138 (1) Section 45 (annual reports) is amended as follows.

(2) In subsection (2)(b) for "the Commissioners" substitute "the Commission".

(3) In subsection (3)--

(a) for the words from "in any" to "expenditure" substitute "a charity's gross income in any financial year",

(b) before "the annual report" insert "a copy of", and

(4) In subsection (3A)--

(a) for the words from "in any" to "exceeds" substitute "a charity's gross income in any financial year does not exceed",

(b) before "the annual report" insert "a copy of",

(c) for "the Commissioners so request, be transmitted to them" substitute "the Commission so requests, be transmitted to it", and

(d) for "the Commissioners" (in the second place) substitute "the Commission".

(5) In subsection (4)--

(a) for "annual report transmitted to the Commissioners" substitute "copy of an annual report transmitted to the Commission", and

(b) before "the statement", and before "the account and statement", insert "a copy of".

(6) In subsection (5) before "annual report" insert "copy of an".

(7) In subsection (6)--

(a) after "Any" insert "copy of an",

(b) for "the Commissioners" (in both places) substitute "the Commission", and

(8) In subsection (7) for the words from "which they have not" onwards substitute "of which they have not been required to transmit a copy to the Commission."

(9) In subsection (8) for "in subsection (3)" substitute "to subsection (3)".

139 (1) Section 46 (special provisions as respects accounts etc. of excepted charities) is amended as follows.

(2) In subsection (2) for "the Commissioners consent" substitute "the Commission consents".

(3) For subsection (3) substitute--

" (3) Except in accordance with subsections (3A) and (3B) below, nothing in section 43, 44, 44A or 45 applies to any charity which--

(a) falls within section 3A(2)(d) above (whether or not it also falls within section 3A(2)(b) or (c)), and

(b) is not registered.

(3A) Section 44A above applies in accordance with subsections (2A) and (2B) above to a charity mentioned in subsection (3) above which is also an exempt charity.

(3B) Sections 44 and 44A above apply to a charity mentioned in subsection (3) above which is also an English National Health Service charity or a Welsh National Health Service charity (as defined in sections 43A and 43B above). "

(4) In subsection (4) for the words from "(other than" onwards substitute " which--

(a) falls within section 3A(2)(b) or (c) above but does not fall within section 3A(2)(d), and

(b) is not registered. "

(5) In subsection (5)--

(a) for "the Commissioners" (in the first place) substitute "the Commission", and

(b) for "the Commissioners' request" substitute "the Commission's request".

(6) For subsection (7) substitute--

" (7) The following provisions of section 45 above shall apply in relation to any report required to be prepared under subsection (5) above as if it were an annual report required to be prepared under subsection (1) of that section--

(a) subsection (3), with the omission of the words preceding "a copy of the annual report", and

(b) subsections (4) to (6). "

(7) Omit subsection (8).

140 (1) Section 47 (public inspection of annual reports etc.) is amended as follows.

(2) In subsection (1)--

(a) for "Any annual report or other document kept by the Commissioners" substitute "Any document kept by the Commission",

(b) for "the Commissioners so determine" substitute "the Commission so determines", and

(3) In subsection (2)(a) after "accounts" insert "or (if subsection (4) below applies) of its most recent annual report".

(4) After subsection (3) add--

" (4) This subsection applies if an annual report has been prepared in respect of any financial year of a charity in pursuance of section 45(1) or 46(5) above.

(5) In subsection (2) above the reference to a charity's most recent annual report is a reference to the annual report prepared in pursuance of section 45(1) or 46(5) in respect of the last financial year of the charity in respect of which an annual report has been so prepared. "

141 (1) Section 48 (annual returns by registered charities) is amended as follows.

(2) In subsection (1) for "the Commissioners" substitute "the Commission".

(3) In subsection (1A) for the words from "neither" to "exceeds" substitute "the charity's gross income does not exceed".

(4) In subsection (2)--

(a) for "the Commissioners" substitute "the Commission", and

(b) for "to them" substitute "to the Commission".

(5) In subsection (3) for "The Commissioners" substitute "The Commission".

142 For section 49 (offences) substitute--

" 49 Offences

(1) If any requirement imposed--

(a) by section 45(3) or (3A) above (taken with section 45(3B), (4) and (5), as applicable), or

(b) by section 47(2) or 48(2) above,

is not complied with, each person who immediately before the date for compliance specified in the section in question was a charity trustee of the charity shall be guilty of an offence and liable on summary conviction to the penalty mentioned in subsection (2).

(2) The penalty is--

(a) a fine not exceeding level 4 on the standard scale, and

(b) for continued contravention, a daily default fine not exceeding 10% of level 4 on the standard scale for so long as the person in question remains a charity trustee of the charity.

(3) It is a defence for a person charged with an offence under subsection (1) to prove that he took all reasonable steps for securing that the requirement in question would be complied with in time. "

143 (1) Section 50 (incorporation of trustees of charity) is amended as follows.

(2) In subsection (1)--

(a) for "the Commissioners" (in the first and third places) substitute "the Commission",

(b) for "the Commissioners consider" substitute "the Commission considers", and

(3) In subsection (2)--

(a) for "The Commissioners" substitute "The Commission",

(b) for "to them" substitute "to the Commission", and

144 (1) Section 52 (applications for incorporation) is amended as follows.

(2) In subsection (1) for "the Commissioners" (in both places) substitute "the Commission".

(3) In subsection (2)--

(a) for "The Commissioners" substitute "The Commission", and

(b) for "they may specify" substitute "it may specify".

145 In section 53(1) (nomination of trustees, and filling up vacancies) for "the Commissioners" substitute "the Commission".

146 (1) Section 56 (power of Commissioners to amend certificate of incorporation) is amended as follows.

(2) In subsection (1)--

(a) for "The Commissioners" substitute "The Commission", and

(b) for "of their own motion" substitute "of the Commission's own motion".

(3) In subsection (2)--

(a) for "of their own motion, the Commissioners" substitute "of its own motion, the Commission",

(b) for "their proposals" substitute "its proposals", and

(4) In subsection (3)--

(a) for "The Commissioners" substitute "The Commission",

(b) for "their proposals" substitute "its proposals", and

(5) In subsection (4) for "The Commissioners" substitute "The Commission".

(6) In the sidenote, for "Commissioners" substitute "Commission".

147 (1) Section 57 (records of applications and certificates) is amended as follows.

(2) In subsection (1)--

(a) for "The Commissioners" substitute "The Commission", and

(b) for "to them" substitute "to it".

(3) In subsection (2)--

(a) for "the Commissioners" (in the first place) substitute "the Commission", and

(b) for "the secretary of the Commissioners" substitute "a member of the staff of the Commission".

148 In section 58 (enforcement of orders and directions) for "the Commissioners" substitute "the Commission".

149 (1) Section 61 (power of Commissioners to dissolve incorporated body) is amended as follows.

(2) In subsection (1)--

(a) for "the Commissioners are" substitute "the Commission is",

(b) for "treated by them" substituted "treated by the Commission", and

(3) In subsection (2)--

(a) for "the Commissioners are" substitute "the Commission is", and

(b) for "the Commissioners" (in the second place) substitute "the Commission".

(4) In subsection (4)--

(a) for "the Commissioners so direct" substitute "the Commission so directs", and

(b) for "the Commissioners" (in the second place) substitute "the Commission".

(5) Omit subsection (7).

(6) In the sidenote, for "Commissioners" substitute "Commission".

150 (1) Section 63 (winding up) is amended as follows.

(2) In subsection (2)--

(a) for "the Commissioners" substitute "the Commission",

(b) for "they have instituted" substitute "it has instituted", and

(3) In subsection (3) for "the Commissioners" (in both places) substitute "the Commission".

(4) In subsection (4) for "the Commissioners" (in both places) substitute "the Commission".

(5) In subsection (5)--

(a) for "the Commissioners" substitute "the Commission", and

(b) for "by them of their own motion" substitute "by the Commission of its own motion".

151 In section 64(3) (alteration of objects clause) for "the Commissioner's consent" substitute "the Commission's consent".

152 In section 65(4) (invalidity of certain transactions) for "the Commissioners" substitute "the Commission".

153 In section 66 (requirement of consent of Commissioners to certain acts), in subsection (1) and the sidenote, for "Commissioners" substitute "Commission".

154 (1) Section 69 (investigation of accounts) is amended as follows.

(2) In subsection (1)--

(a) for "the Commissioners" substitute "the Commission",

(b) for "they think fit" substitute "the Commission thinks fit", and

(3) In subsections (2)(c) and (3) for "the Commissioners" substitute "the Commission".

(4) In subsection (4)--

(a) for "the Commissioners" (in the first place) substitute "the Commission", and

(b) for "the Commissioners think" substitute "the Commission thinks".

155 For the heading preceding section 72 substitute "Charity trustees".

156 (1) Section 72 (persons disqualified for being trustees of a charity) is amended as follows.

(2) In subsection (1)(d)(i) after "by the" insert "Commission or".

(3) In subsection (4) for "The Commissioners" substitute "The Commission".

(4) In subsection (6)--

(a) for "the Commissioners" (in the first place) substitute "the Commission",

(b) for "they think fit" substitute "it thinks fit",

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