Charities Bill

NOTICE OF AMENDMENTS TABLED ON

15 MAY 2008 FOR CONSIDERATION STAGE

Clause 2 , Page 2, Line 29
After ‘belief in’ insert ‘one god or’

Minister for Social Development

Clause 3 , Page 3, Line 41
Leave out ‘disbenefit’ and insert ‘detriment’

Minister for Social Development

Clause 16 , Page 11, Line 15
Leave out ‘and’ and insert -

‘(b) if the charity is a designated religious charity within the meaning of section 165, a statement to that effect, and’

Minister for Social Development

Clause 27 , Page 20, Line 39
Leave out ‘except in so far as the context otherwise requires’

Minister for Social Development

Clause 32 , Page 26, Line 1
Leave out subsection (10)

Minister for Social Development

Clause 45 , Page 37, Line 29
After ‘Act 1988 (c. 1)’ insert ‘or Part 10 of the Income Tax Act 2007’

Minister for Social Development

Clause 45 , Page 37, Line 36
After ‘Act 1988’ insert ‘or Part 10 of the Income Tax Act 2007’

Minister for Social Development

Clause 46 , Page 38, Line 29
At end insert -

‘(6) In the case of a charity that is a company, an order under this section may authorise an act notwithstanding that it involves the breach of a duty imposed on a director of the company under Chapter 2 of Part 10 of the Companies Act 2006 (general duties of directors).’

Minister for Social Development

Clause 52
The Membes listed below give notice of her intention to oppose the question that Clause 52 stand part of the Bill.

Minister for Social Development

Clause 57 , Page 46, Line 30
Leave out ‘recalled’ and insert ‘revoked’

Minister for Social Development

Clause 57 , Page 47, Line 2
Leave out ‘expenses against a charity, award expenses’ and insert ‘costs against a charity, award costs’

Minister for Social Development

Clause 66 , Page 54, Line 31
Leave out paragraph (a) and insert -

‘(a) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006 (c. 46); or’

Minister for Social Development

Clause 66 , Page 55, Line 7
Leave out paragraphs (a) and (b) and insert -

‘who is -

(a) a member of one of the bodies listed in subsection (4A); or
(b) a Fellow of the Association of Charity Independent Examiners.
(4A) The bodies referred to in subsection (4)(a) are -

(a) the Institute of Chartered Accountants in England and Wales;
(b) the Institute of Chartered Accountants of Scotland;
(c) the Institute of Chartered Accountants in Ireland;
(d) the Association of Chartered Certified Accountants;
(e) the Association of Authorised Public Accountants;
(f) the Association of Accounting Technicians;
(g) the Association of International Accountants;
(h) the Chartered Institute of Management Accountants;
(i) the Institute of Chartered Secretaries and Administrators;
(j) the Chartered Institute of Public Finance and Accountancy.’

Minister for Social Development

Clause 66 , Page 56, Line 6
Leave out paragraph (b) and insert -

‘(b) amend subsection (4) or (4A) by adding or removing a body to or from the list in that subsection or by varying any entry for the time being included in that list.’

Minister for Social Development

Clause 66 , Page 56, Line 9
Leave out subsection (10) and insert -

‘(10) Nothing in this section applies in relation to the accounts of a charity for a financial year if those accounts are required to be audited in accordance with Part 16 of the Companies Act 2006 (c. 46).’

Minister for Social Development

Clause 67 , Page 56, Line 17
At end insert -

‘or

(iii) the accounts so prepared under section 394 of the Companies Act 2006
(duty to prepare individual accounts),’

Minister for Social Development

Clause 69 , Page 58, Line 23
Leave out from ‘Part 8’ to end of line 25 and insert -

‘Part 15 of the Companies Act 2006 (c. 46), together with -

(a) where the accounts of the charity for that year have been audited under Part 16 of that Act, a copy of the report made by the auditor on those accounts;
(b) where the accounts of the charity for that year have been audited under section 66, a copy of the report made by the auditor on those accounts;
(c) where the accounts of the charity for that year have been examined under that section, a copy of the report made by the person carrying out the examination.’

Minister for Social Development

Clause 70 , Page 59, Line 16
Leave out ‘Part 8 of the Companies ( Northern Ireland) Order 1986 (NI 6)’ and insert ‘Part 15 of the Companies Act 2006 (c. 46)’

Minister for Social Development

Clause 70 , Page 59, Line 20
Leave out sub-paragraphs (ii) and (iii) and insert -

‘(ii) they have been examined by an independent examiner under section 66(3)(a); or
(iii) they relate to a year in respect of which the company is exempt from audit under Part 16 of the Companies Act 2006 and neither section 66(2) nor section 66(3) applied to them.’

Minister for Social Development

Clause 92 , Page 72, Line 8
Leave out ‘Article 675 of the Companies ( Northern Ireland) Order 1986 (NI 6)’ and insert ‘section 1157 of the Companies Act 2006 (c. 46)’

Minister for Social Development

Clause 92 , Page 72, Line 10
Leave out ‘Article 675’ and insert ‘section 1157’

Minister for Social Development

Clause 93 , Page 72, Line 14
Leave out ‘Article 675 of the Companies ( Northern Ireland) Order 1986’ and insert ‘Section 1157 of the Companies Act 2006’

Minister for Social Development

Clause 93 , Page 72, Line 20
Leave out ‘Article 675 of the Companies ( Northern Ireland) Order 1986’ and insert ‘section 1157 of the Companies Act 2006’

Minister for Social Development

Clause 99
Leave out clause 99 and insert -

‘Consent of Commission required for approval etc by members of charitable companies

99. -(1) Where a company is a charity -
(a) any approval given by the members of the company under any provision of Chapter 4 of Part 10 of the Companies Act 2006 (transactions with directors requiring approval by members) listed in subsection (2), and
(b) any affirmation given by members of the company under section 196 or 214 of that Act (affirmation of unapproved property transactions and loans),
is ineffective without the prior written consent of the Commission.
(2) The provisions are -
(a) section 188 (directors’ long-term service contracts);
(b) section 190 (substantial property transactions with directors etc);
(c) section 197, 198 or 200 (loans and quasi-loans to directors etc);
(d) section 201 (credit transactions for benefit of directors etc);
(e) section 203 (related arrangements);
(f) section 217 (payments to directors for loss of office);
(g) section 218 (payments to directors for loss of office: transfer of undertaking etc).’

Minister for Social Development

Clause 99
After clause 99 insert -

‘Consent of Commission required for certain acts of charitable company

99A. - (1) A company that is a charity may not do an act to which this section applies without the prior written consent of the Commission.
(2) This section applies to an act that -
(a) does not require approval under a listed provision of Chapter 4 of Part 10 of the Companies Act 2006 (transactions with directors) by the members of the company, but
(b) would require such approval but for an exemption in the provision in question that disapplies the need for approval on the part of the members of a body corporate which is a wholly owned subsidiary of another body corporate.
(3) The reference to a listed provision is a reference to a provision listed in section 99(2).
(4) If a company acts in contravention of this section, the exemption referred to in subsection (2)(b) shall be treated as of no effect in relation to the act.’

Minister for Social Development

Clause 100
Leave out clause 100 and insert -

‘Requirement to disclose charitable status

100. - (1) Where a company is a charity and its name does not include the word “charity” or “charitable”, the fact that the company is a charity must be stated in legible characters -
(a) in every location, and in every description of document or communication, in which it is required by regulations under section 82 of the Companies Act 2006 (c. 46) to state its registered name, and
(b) in all conveyances purporting to be executed by the company.
(2) In subsection (1)(b) “conveyance” means any instrument creating, transferring, varying or extinguishing an interest in land.’

Minister for Social Development

Clause 101
Leave out clause 101 and insert -

‘Civil consequences of failure to make required disclosure

101. - (1) This section applies to any legal proceedings brought by a company to which section 100 applies to enforce a right arising out of a contract or conveyance in connection with which there was a failure to comply with that section.

(2) The proceedings shall be dismissed if the defendant to the proceedings (“D”) shows -
(a) that D has a claim against the claimant arising out of the contract or conveyance that D has been unable to pursue by reason of the failure to comply with section 100, or
(b) that D has suffered some financial loss in connection with the contract or conveyance by reason of the failure to comply with that section,
unless the court before which the proceedings are brought is satisfied that it is just and equitable to permit the proceedings to continue.
(3) This section does not effect the right of any person to enforce such rights as that person may have against another in any proceedings brought by that person.’

Minister for Social Development

Clause 101
After clause 101 insert -

‘Criminal consequences of failure to make required disclosure

101A. - (1) Where a company fails, without reasonable excuse, to comply with section 100, an offence is committed by -

(a) the company, and
(b) every officer of the company who is in default.
(2) For this purpose a shadow director of the company is treated as an officer of the company if the failure is to comply with section 100(1)(a) and that person would be treated as an officer of the company for the purposes of the corresponding requirement of regulations under section 82 of the Companies Act 2006 (c. 46).
(3) A person guilty of such an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.
(4) Expressions used in this section have the same meaning as in section 84 of the Companies Act 2006 (criminal consequences of failure to disclose company’s registered name).’

Minister for Social Development

Clause 102 , Page 78, Line 3
Leave out paragraphs (a) and (b) and insert ‘an auditor of a charitable company appointed under Chapter 2 of Part 16 of the Companies Act 2006 (c. 46) (appointment of auditors)’

Minister for Social Development

Clause 103 , Page 78, Line 16
After ‘condition and’ insert ‘relevant’

Minister for Social Development

Clause 103 , Page 78, Line 18
Leave out from ‘company auditor’ to the end of line 19 and insert ‘statutory auditor under Part 42 of the Companies Act 2006 (c. 46)’

Minister for Social Development

Clause 103 , Page 78, Line 19
At end insert -

‘(1A) “Relevant accounts” means accounts required to be audited under Part 16 of the Companies Act 2006.’

Minister for Social Development

Clause 104
The Member listed below give notice of her intention to oppose the question that Clause 104 stand part of the Bill.

Minister for Social Development

Clause 107 , Page 80, Line 2
Leave out subsection (1) and insert -

‘(1) The name of a CIO must appear in legible characters -
(a) in every location, and in every description of document or communication, in which a charitable company would be required by regulations under section 82 of the Companies Act 2006 (c. 46) to state its registered name; and
(b) in all conveyances purporting to be executed by the CIO.’

Minister for Social Development

Clause 107 , Page 80, Line 10
Leave out ‘subsection (1)(d)’ and insert ‘subsection (1)(b)’

Minister for Social Development

Clause 107 , Page 80, Line 17
Leave out ‘documents’ and insert ‘locations, documents, communications and conveyances’

Minister for Social Development

Clause 107
After clause 107 insert -

‘Civil consequences of failure to disclose name and status

107A. - (1) This section applies to any legal proceedings brought by a CIO to enforce a right arising out of a contract or conveyance in connection with which there was a failure to comply with section 107.
(2) The proceedings shall be dismissed if the defendant to the proceedings (“D”) shows -
(a) that D has a claim against the CIO arising out of the contract or conveyance that D has been unable to pursue by reason of the failure to comply with section 107, or
(b) that D has suffered some financial loss in connection with the contract or conveyance by reason of the failure to comply with that section,
unless the court before which the proceedings are brought is satisfied that it is just and equitable to permit the proceedings to continue.
(3) This section does not affect the right of any person to enforce such rights as that person may have against another in any proceedings brought by that person.’

Minister for Social Development

Clause 108 , Page 80, Line 19
Leave out subsections (1) and (2) and insert -

‘(1) In the case of failure, without reasonable excuse, to comply with section 107 an offence is committed by -
(a) every charity trustee of the CIO who is in default, and
(b) any other person who on the CIO’s behalf -
(i) signs or authorises the signing of the offending document, communication or conveyance, or
(ii) otherwise commits or authorises the offending act or omission.
(1A) A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.
(2) The reference in subsection (1) to a charity trustee being “in default”, and the reference in subsection (2) to a daily default fine, have the same meaning as in the Companies Acts (see sections 1121 to 1123 and 1125 of the Companies Act 2006 (c. 46)).’

Minister for Social Development

Clause 114 , Page 85, Line 8
Leave out ‘Articles 51 to 53 of the Companies (Audit, Investigations and Community Enterprise) ( Northern Ireland) Order 2005 (NI 17)’ and insert ‘sections 53 to 55 of the Companies (Audit, Investigations and Community Enterprise) Act 2004’

Minister for Social Development

Clause 122 , Page 90
Leave out line 7 and insert -

‘(b) either -
(i) it does not hold any designated land; or
(ii) the total market value of all designated land which it holds does not exceed £90,000; and’

Minister for Social Development

Clause 122 , Page 91, Line 31
Leave out ‘the sum’ and insert ‘any sum’

Minister for Social Development

Clause 122 , Page 91, Line 39
At end insert -

‘(13A) In this section “market value”, in relation to any land held by a charity, means -
(a) the market value of the land as recorded in the accounts for the last financial year of the charity, or
(b) if no such value was so recorded, the current market value of the land as determined on a valuation carried out for the purpose.’

Minister for Social Development

Clause 138 , Page 105, Line 11
Leave out ‘benevolent or philanthropic’

Minister for Social Development

Clause 159
The Member listed below give notice of her intention to oppose the question that Clause 159 stand part of the Bill.

Minister for Social Development

Clause 165 , Page 133, Line 34
After ‘laid before’ insert ‘and approved by a resolution of’

Minister for Social Development

Clause 166 , Page 134, Line 15
Leave out ‘10 years’ and insert ‘5 years; and’

Minister for Social Development

Clause 166 , Page 134, Line 16
Leave out paragraph (d)

Minister for Social Development

Clause 180 , Page 140, Line 22
Leave out ‘except in so far as the context otherwise requires’

Minister for Social Development

Clause 180 , Page 140, Line 38
Leave out ‘Article 231 of the Companies ( Northern Ireland) Order 1986’ and insert ‘section 390 of the Companies Act 2006 (c. 46)’

Minister for Social Development

Clause 180 , Page 141, Line 29
Leave out ‘except in so far as the context otherwise requires’

Minister for Social Development

Schedule 3 , Page 155
Leave out lines 33 to 45

Minister for Social Development

Schedule 6 , Page 165, Line 18
Leave out sub-paragraph (2) and insert -

‘(2) A charity is a “parent charity” if it is (or is to be treated as) a parent undertaking in relation to one or more other undertakings in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46).’

Minister for Social Development

Schedule 6 , Page 166, Line 5
Leave out ‘Article 267(1) of the Companies (Northern Ireland) Order 1986’ and insert ‘section 1161(1) of the Companies Act 2006 (c. 46)’

Minister for Social Development

Schedule 6 , Page 166, Line 13
After ‘section 64(1)’ insert ‘or, as the case may be, section 386 of the Companies Act 2006 (duty to keep accounting records)’

Minister for Social Development

Schedule 6 , Page 166, Line 18
After ‘section 64(1)’ insert ‘or section 386 of the Companies Act 2006’

Minister for Social Development

Schedule 6 , Page 166, Line 26
Leave out sub-paragraph (1) and insert -

‘(1) This paragraph applies in relation to a financial year of a charity if -
(a) the charity is a parent charity at the end of that year; and
(b) (where it is a company) it is not required to prepare consolidated accounts for that year under section 399 of the Companies Act 2006 (c. 46) (duty to prepare group accounts), whether or not such accounts are in fact prepared.’

Minister for Social Development

Schedule 6 , Page 167, Line 7
After ‘parent charity’ insert ‘(other than a parent charity which is a company)’

Minister for Social Development

Schedule 6 , Page 167, Line 12
At end insert -

‘(6A) If the requirement in sub-paragraph (2) applies to the charity trustees of a parent charity in relation to a financial year and the charity is a company, that requirement so applies in addition to the requirement in section 394 of the Companies Act 2006 (duty to prepare individual accounts).’

Minister for Social Development

Schedule 6 , Page 167, Line 36
At end insert -

‘(3) For the purposes of sub-paragraph (2), section 64 applies as if subsection (5) of that section were omitted.’

Minister for Social Development

Schedule 6 , Page 168, Line 29
Leave out sub-paragraph (7) and insert -

‘(7) If this paragraph applies in relation to a financial year of a parent charity by virtue of sub-paragraph (1) -
(a) subject to head (b), the appropriate audit provision shall apply in relation to the parent charity’s own accounts for that year (whether or not it would otherwise so apply);
(b) where the parent charity is a company and its own accounts for that year are not required to be audited in accordance with Part 16 of the Companies Act 2006 (c. 46), section 66(2) shall apply in relation to those accounts (whether or not it would otherwise so apply).’

Minister for Social Development

Schedule 6 , Page 168, Line 34
Leave out ‘section 66(2)’ and insert -

‘ -

(a) subject to sub-paragraph (b), section 66(2);
(b) if the parent charity is a company, section 66(2) or Part 16 of the Companies Act 2006 (as the case may be).’

Minister for Social Development

Schedule 6 , Page 168
Leave out lines 42 and 43

Minister for Social Development

Schedule 6 , Page 169, Line 38
Leave out ‘Article 397A of the Companies ( Northern Ireland) Order 1986 (NI 6)’ and insert ‘section 499 or 500 of the Companies Act 2006 (c. 46)’

Minister for Social Development

Schedule 8 , Page 176, Line 7
At end insert -

‘The Administration of Estates ( Northern Ireland) Order 1979 (NI 14)

2A. In Article 9 (grant of representation to trust corporation) in paragraph (4)(a) after “High Court” insert “or the Charity Commission for Northern Ireland”.’

Minister for Social Development

Schedule 8 , Page 176
Leave out lines 22 to 29

Minister for Social Development

Schedule 8 , Page 177, Line 21
At end insert -

‘The Pensions ( Northern Ireland) Order 2005 (NI 1)

12. In Schedule 3 (disclosure for facilitating discharge of functions by other supervising authorities) -
(a) in the entry relating to the Department, omit the words “the Charities Act ( Northern Ireland) 1964 (c. 33)”; and
(b) at the end add -
“The Charity Commission for Northern Ireland.
Functions under the Charities Act( Northern Ireland) 2008.”.

The Companies Act 2006 (c. 46)

13. - (1) In section 21(2)(b) for “Article 9 of the Charities (Northern Ireland) Order 1987 (SI 1987/2048 (N.I.19))” substitute “section 97 of the Charities Act (Northern Ireland) 2008”.
(2) In section 31(4)(b) for “Article 9 of the Charities (Northern Ireland) Order 1987 (SI 1987/2048 (N.I.19))” substitute “section 97 of the Charities Act (Northern Ireland) 2008”.
(3) In section 1140(2)(c)(ii) after “Charities Act 1993 (c. 10)” insert “or section 33 of Charities Act ( Northern Ireland) 2008”.
(4) In section 1154(1)(b) after “Charities Act 1993 (c. 10)” insert “or section 33 of the Charities Act ( Northern Ireland) 2008”.
(5) In section 1154(2) after paragraph (b) insert -
“(bb) in the case of appointment of a receiver or manager under section 33 of the Charities Act (Northern Ireland) 2008, by the Charity Commission for Northern Ireland;”.
(6) In Schedule 1, in paragraph 6(4) after “Charities Act 1993 (c. 10)” insert “, section 44 or 45 of the Charities Act (Northern Ireland) 2008”.’

Minister for Social Development

Schedule 9 , Page 178
Leave out lines 11 to 13

Minister for Social Development

Schedule 9 , Page 178, Line 16
At end insert -

Minister for Social Development

Long Title

Leave out ‘to make provision about the funding of such institutions;’

Minister for Social Development