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(1)A charity trustee must, in exercising functions in that capacity, act in the interests of the charity and must, in particular—
(a)seek, in good faith, to ensure that the charity acts in a manner which is consistent with its purposes,
(b)act with the care and diligence that it is reasonable to expect of a person who is managing the affairs of another person, and
(c)in circumstances capable of giving rise to a conflict of interest between the charity and any person responsible for the appointment of the charity trustee—
(i)put the interests of the charity before those of the other person, or
(ii)where any other duty prevents the charity trustee from doing so, disclose the conflicting interest to the charity and refrain from participating in any deliberation or decision of the other charity trustees with respect to the matter in question.
(2)The charity trustees of a charity must ensure that the charity complies with any direction, requirement, notice or duty imposed on it by virtue of this Act.
(3)Subsections (1) and (2) are without prejudice to any other duty imposed by enactment or otherwise on a charity trustee in relation to the exercise of functions in that capacity.
(4)Any breach of the duty under subsection (1) or (2) is to be treated as being misconduct in the administration of the charity.
(5)All charity trustees must take such steps as are reasonably practicable for the purposes of ensuring—
(a)that any breach of a duty under subsection (1) or (2) is corrected by the trustee concerned and not repeated, and
(b)that any trustee who has been in serious or persistent breach of either or both of those duties is removed as a trustee.
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Text created by the Scottish Executive department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills
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