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Proceeding contribution from Lord Bassam of Brighton (Labour) in the House of Lords on Tuesday, 8 November 2005. It occurred during Debate on bill on Charities Bill [HL].


Charities Bill [HL]

moved Amendments Nos. 9 to 12:"Page 40, line 20, leave out ““wide enough to encompass the purposes”” and insert ““substantially similar to the purposes (or any of the purposes)””""Page 41, line 14, leave out ““purposes which are similar in character”” and insert ““such of its purposes as are substantially similar””""Page 41, line 37, at end insert—" ““(   )   Where a charity has a permanent endowment, this section has effect in accordance with section 74AA.”” Page 42, line 26, at end insert— ““74AA   TRANSFER WHERE CHARITY HAS PERMANENT ENDOWMENT (1)   This section provides for the operation of section 74 above where a charity within section 74(1) has a permanent endowment (whether or not the charity’s trusts contain provision for the termination of the charity). (2)   In such a case section 74 applies as follows— (a)   if the charity has both a permanent endowment and other property (““unrestricted property””)— (i)   a resolution under section 74(2) must relate to both its permanent endowment and its unrestricted property, and (ii)   that section applies in relation to its unrestricted property in accordance with subsection (3) below and in relation to its permanent endowment in accordance with subsections (4) to (11) below; (b)   if all of the property of the charity is comprised in its permanent endowment, that section applies in relation to its permanent endowment in accordance with subsections (4) to (11) below. (3)   Section 74 applies in relation to unrestricted property of the charity as if references in that section to all or any of the property of the charity were references to all or any of its unrestricted property. (4)   Section 74 applies in relation to the permanent endowment of the charity with the following modifications. (5)   References in that section to all or any of the property of the charity are references to all or any of the property comprised in its permanent endowment. (6)   If the property comprised in its permanent endowment is to be transferred to a single charity, the charity trustees must (instead of being satisfied as mentioned in section 74(4)(b)) be satisfied that the proposed transferee charity has purposes which are substantially similar to all of the purposes of the transferor charity. (7)   If the property comprised in its permanent endowment is to be transferred to two or more charities, the charity trustees must (instead of being satisfied as mentioned in section 74(4)(b)) be satisfied— (a)   that the proposed transferee charities, taken together, have purposes which are substantially similar to all of the purposes of the transferor charity, and (b)   that each of the proposed transferee charities has purposes which are substantially similar to one or more of the purposes of the transferor charity. (8)   In the case of a transfer to which subsection (7) above applies, the resolution under section 74(2) must provide for the property comprised in the permanent endowment of the charity to be divided between the transferee charities in such a way as to take account of such guidance as may be given by the Commission for the purposes of this section. (9)   The requirement in section 74(11) shall apply in the case of every such transfer, and in complying with that requirement the charity trustees of a transferee charity must secure that the application of property transferred to the charity takes account of any such guidance. (10)   Any guidance given by the Commission for the purposes of this section may take such form and be given in such manner as the Commission considers appropriate. (11)   For the purposes of sections 74 and 74A above, any reference to any obligation imposed on the charity trustees by or under section 74 includes a reference to any obligation imposed on them by virtue of any of subsections (6) to (8) above. (12)   Section 74(14) applies for the purposes of this section as it applies for the purposes of section 74.”” On Question, amendments agreed to. Clause 41 [Power to replace purposes]:


Secondary information

Type
Proceeding contribution
Reference
675 c588-9 
Session
2005-06
Chamber / Committee
House of Lords chamber
Subjects
Staff Complaints Compensation Clubs Charities Audit Community interest companies Charity Commission Charitable donations Civil servants Insolvency Gifts and endowments Income Private education Pay Property transfer Management Mergers Ombudsman Regulation Registration Tax allowances Sports Charity Tribunal
Legislation
Charities Bill (HL) 2005-06
Link
View this Proceeding contribution on www.publications.parliament.uk