Charities (Amendment) Act 2024
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PART 2 Amendment of Principal Act | ||
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Amendment of section 2 of Principal Act | ||
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3. Section 2 of the Principal Act is amended— | ||
(a) in subsection (1)— | ||
(i) by the substitution, in the definition of “charitable organisation”, of “Part 6A” for “section 89”, | ||
(ii) by the substitution, in the definition of “charitable trust”, of “Part 6A” for “section 89”, | ||
(iii) by the substitution of the following definition for the definition of “charity trustee”: | ||
“ ‘charity trustee’ includes— | ||
(a) in the case of a charitable organisation that is a company— | ||
(i) any director of the company, | ||
(ii) any other person in accordance with whose directions or instructions the directors of the company are accustomed to act, unless the directors are accustomed so to act by reason only that they do so on advice given by the person in a professional capacity, and | ||
(iii) any other person who occupies the position of director of the company but who has not been formally appointed as such, unless the person only gives advice in a professional capacity to the company or any directors of it, | ||
but does not include a person who is the company secretary, unless he or she is also a person referred to in subparagraph (i), (ii) or (iii), | ||
(b) in the case of a charitable organisation that is a body corporate (other than a company) or an unincorporated body of persons— | ||
(i) any person who, in relation to that body, is— | ||
(I) a member of the board, or | ||
(II) a member of the governing body, | ||
(ii) any other person in accordance with whose directions or instructions a person referred to in subparagraph (i) is accustomed to act, unless such person is accustomed so to act by reason only that they do so on advice given by that person in a professional capacity, and | ||
(iii) any other person who occupies the position of member of the board or member of the governing body but who has not been formally appointed as such, unless the person only gives advice in a professional capacity to the charitable organisation or any members of the board or members of the governing body, | ||
but does not include a person who performs the functions of a secretary to the board or to the governing body, unless he or she is also a person referred to in subparagraph (i), (ii) or (iii), and | ||
(c) in the case of a charitable trust to which section 54A(2) applies, the body corporate and the directors of that body corporate, | ||
and references to a charity trustee of a charitable organisation shall be construed as including references to a trustee of a charitable trust;”, | ||
(iv) by the substitution of the following paragraph for paragraph (b) of the definition of “constitution”: | ||
“(b) in the case of a charitable organisation that is a company, the constitution (within the meaning of section 2(1) of the Act of 2014),”, | ||
(v) in the definition of “education body”— | ||
(I) by the insertion in paragraph (e) of “or” after “Act of 1998,”, | ||
(II) by the substitution in paragraph (f) of “of that Act;” for “of that Act, or”, and | ||
(III) by the deletion of paragraph (g), | ||
(vi) by the substitution, in the definition of “registration number”, of “section 39(7)(e) or 40(6)(e), as the case may be;” for “section 40(6)(e);”, and | ||
(vii) by the insertion of the following definitions: | ||
“ ‘Act of 2014’ means the Companies Act 2014 ; | ||
‘authorised officer’ has the meaning assigned to it by section 68A(1); | ||
‘balance sheet total’, in relation to a charitable organisation, means the aggregate of the amounts shown as assets in the organisation’s balance sheet; | ||
‘insolvency arrangement’ has the same meaning as it has in the Personal Insolvency Act 2012 ; | ||
‘member of the charitable organisation’ means— | ||
(a) in the case of a charitable organisation that is a company, a member of the company within the meaning of section 168 of the Act of 2014, or | ||
(b) in the case of a charitable organisation that is a body corporate (other than a company) or an unincorporated body of persons, a person who is entitled to appoint, nominate or vote for the appointment of a person as a charity trustee of that organisation; | ||
‘removal notice’ has the meaning assigned to it by section 44A(5)(b); | ||
‘specified clause’ has the meaning assigned to it by section 42A(8);”, | ||
and | ||
(b) in subsection (2)— | ||
(i) by the substitution, in paragraph (a), of the following subparagraph for subparagraph (i): | ||
“(i) a person is connected with an individual if that person is a child, step-child, parent, step-parent, brother, sister, spouse, civil partner, cohabitant, grandparent or grandchild of the individual or a child of the individual’s civil partner or cohabitant,”, | ||
and | ||
(ii) by the substitution of the following paragraph for paragraph (b): | ||
“(b) In this subsection— | ||
‘Act of 2010’ means the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ; | ||
‘civil partner’ means a person in a civil partnership or legal relationship to which section 3 of the Act of 2010 applies; | ||
‘cohabitant’ means a cohabitant within the meaning of section 172(1) of the Act of 2010; | ||
‘control’ has the meaning assigned to it by section 11 of the Taxes Consolidation Act 1997 .”. |