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Charities Act 2011

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This is the original version (as it was originally enacted).

306Meaning of “relevant charity merger” etc.

(1)In this Part “relevant charity merger” means—

(a)a merger of two or more charities in connection with which one of them (“the transferee”) has transferred to it all the property of the other or others, each of which (a “transferor”) ceases to exist, or is to cease to exist, on or after the transfer of its property to the transferee, or

(b)a merger of two or more charities (“transferors”) in connection with which both or all of them cease to exist, or are to cease to exist, on or after the transfer of all of their property to a new charity (“the transferee”).

(2)In the case of a merger involving the transfer of property of any charity—

(a)which has both a permanent endowment and other property (“unrestricted property”), and

(b)whose trusts do not contain provision for the termination of the charity,

subsection (1)(a) or (b) applies subject to the modifications in subsection (3).

(3)The modifications in relation to any such charity are—

(a)the reference to all of its property is to be treated as a reference to all of its unrestricted property, and

(b)any reference to its ceasing to exist is to be treated as omitted.

(4)In this section and sections 307 and 308—

(a)any reference to a transfer of property includes a transfer effected by a vesting declaration, and

(b)“vesting declaration” means a declaration to which section 310(2) applies.

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