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Charities Act 1993

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Section 36(2).

SCHEDULE 5E+W Meaning of “connected person” for purposes of section 36(2)

1In section 36(2) of this Act “connected person”, in relation to a charity, means—E+W

(a)a charity trustee or trustee for the charity;

(b)a person who is the donor of any land to the charity (whether the gift was made on or after the establishment of the charity);

(c)a child, parent, grandchild, grandparent, brother or sister of any such trustee or donor;

(d)an officer, agent or employee of the charity;

(e)the spouse of any person falling within any of sub-paragraphs (a) to (d) above;

(f)an institution which is controlled—

(i)by any person falling within any of sub-paragraphs (a) to (e) above, or

(ii)by two or more such persons taken together; or

(g)a body corporate in which—

(i)any connected person falling within any of sub-paragraphs (a) to (f) above has a substantial interest, or

(ii)two or more such persons, taken together, have a substantial interest.

2(1)In paragraph 1(c) above “child” includes a stepchild and an illegitimate child.E+W

(2)For the purposes of paragraph 1(e) above a person living with another as that person’s husband or wife shall be treated as that person’s spouse.

3For the purposes of paragraph 1(f) above a person controls an institution if he is able to secure that the affairs of the institution are conducted in accordance with his wishes.E+W

4(1)For the purposes of paragraph 1(g) above any such connected person as is there mentioned has a substantial interest in a body corporate if the person or institution in question—E+W

(a)is interested in shares comprised in the equity share capital of that body of a nominal value of more than one-fifth of that share capital, or

(b)is entitled to exercise, or control the exercise of, more than one-fifth of the voting power at any general meeting of that body.

(2)The rules set out in Part I of Schedule 13 to the M1Companies Act 1985 (rules for interpretation of certain provisions of that Act) shall apply for the purposes of sub-paragraph (1) above as they apply for the purposes of section 346(4) of that Act (“connected persons” etc).

(3)In this paragraph “equity share capital” and “share” have the same meaning as in that Act.

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