The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
Governance disputes involving trustees, members or other supporters can be especially damaging. If not resolved decisively, they can stop the charity functioning effectively and severely damage a charity’s reputation.
In the worst cases, internal governance disputes, can pose a greater threat to your business than external threats. This is true whatever the cause. Internal disputes emerge for a wide variety of reasons including differences of opinion between individuals, broader societal changes or a concerted effort to change the direction of an organisation. We can help you to resolve such disputes effectively in the best interests of the charity.
We can help you to:
- review the issues and explore mediation and other alternatives to legal action;
- decide whether the Charity Commission should be involved and, if so, when and how to do so;
- where legal proceedings are necessary, assess the prospects of success or failure and the likely impact on the charity of such action; and
- comply with the particular rules that apply where a dispute involves ‘charity proceedings’ – a particular class of dispute involving the internal administration of a charity.
Dealing with internal disputes involves complex legal issues. Charity trustees may find themselves called on to justify their actions or meet the cost of legal proceedings themselves. Early advice is required to minimise these risks.
If a governance issue arises, there is a good chance one of our team has seen it before. We bring that experience to bear in finding the most effective route to a resolution. We offer a clear and balanced external perspective to help you understand the strengths and weaknesses of your position. Where appropriate we have the experience and expertise to fight your corner, if necessary through the courts.
Our advice is practical, clear and we work with our clients to guide them through every step of the legal process. Our experienced teams have extensive sector knowledge and experience to work with you through periods of uncertainty, change and difficulty.
If you would like further information about governance disputes or how our experienced team can help you, please get in touch.
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
Our previous round-up began by sharing the news that two vaccines had shown very promising test results. Here we are, not even a month later, and the first vaccines have already been administered!
Finally, there is a glimmer of hope that perhaps the Covid-19 pandemic could be reaching its end.
Last week, England entered another period of lockdown which will last until at least 2 December.
It has been another difficult few weeks for many of us, especially those who find themselves under tier 3 restrictions.
Charity Financials, the financial information program from Wilmington Charities, has published its latest Income Monitor report.
A recent increase in COVID-19 cases in the UK means new measures are being put in place in an effort to reduce the risk of a second wave. Whilst the impact of COVID-19 continues to be felt, it is important to remain focused on the sector’s road to recovery.
The Court has confirmed that a party cannot withhold its consent in order to re-write the original bargain.
Catch up with all the latest charity updates in this fortnight’s news roundup
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