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Charities Act 2011

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76Suspension of trustees etc. and appointment of interim managersE+W

(1)Subsection (3) applies where, at any time after it has instituted an inquiry under section 46 with respect to any charity, the Commission is satisfied—

(a)that there is or has been [F1a failure to comply with an order or direction of the Commission, a failure to remedy any breach specified in a warning under section 75A, or any other] misconduct or mismanagement in the administration of the charity, or

(b)that it is necessary or desirable to act for the purpose of—

(i)protecting the property of the charity, or

(ii)securing a proper application for the purposes of the charity of that property or of property coming to the charity.

(2)The reference in subsection (1) to misconduct or mismanagement extends (regardless of anything in the trusts of the charity) to the employment—

(a)for the remuneration or reward of persons acting in the affairs of the charity, or

(b)for other administrative purposes,

of sums which are excessive in relation to the property which is or is likely to be applied or applicable for the purposes of the charity.

(3)The Commission may of its own motion do one or more of the following—

(a)by order suspend any person who is a trustee, charity trustee, officer, agent or employee of the charity from office or employment pending consideration being given to the person's removal (whether under section 79 or 80 or otherwise);

(b)by order appoint such number of additional charity trustees as it considers necessary for the proper administration of the charity;

(c)by order—

(i)vest any property held by or in trust for the charity in the official custodian,

(ii)require the persons in whom any such property is vested to transfer it to the official custodian, or

(iii)appoint any person to transfer any such property to the official custodian;

(d)order any person who holds any property on behalf of the charity, or of any trustee for it, not to part with the property without the approval of the Commission;

(e)order any debtor of the charity not to make any payment in or towards the discharge of the debtor's liability to the charity without the approval of the Commission;

(f)by order restrict (regardless of anything in the trusts of the charity) the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the charity without the approval of the Commission;

(g)by order appoint (in accordance with section 78) an interim manager, to act as receiver and manager in respect of the property and affairs of the charity.

(4)The Commission may not make an order under subsection (3)(a) so as to suspend a person from office or employment for a period of more than 12 months[F2, subject to any extension under subsection (7)].

(5)But any order under subsection (3)(a) made in the case of any person (“P”) may make provision, as respects the period of P's suspension for matters arising out of it, and in particular—

(a)for enabling any person to execute any instrument in P's name or otherwise act for P, and

(b)in the case of a charity trustee, for adjusting any rules governing the proceedings of the charity trustees to take account of the reduction in the number capable of acting.

This does not affect the generality of section 337(1) and (2).

(6)The Commission—

(a)must, at such intervals as it thinks fit, review any order made by it under paragraph (a), or any of paragraphs (c) to (g), of subsection (3), and

(b)if on any such review it appears to the Commission that it would be appropriate to discharge the order in whole or in part, must so discharge it (whether subject to any savings or other transitional provisions or not).

[F3(7)At any time before the expiry of an order under paragraph (a) of subsection (3) the Commission may extend or further extend the suspension by an order under that paragraph, provided that—

(a)the order does not extend the suspension for a period of more than 12 months, and

(b)the total period of suspension is not more than 2 years.]

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Amendments (Textual)

F1Words in s. 76(1)(a) substituted (31.7.2016 for specified purposes, 1.11.2016 in so far as not already in force) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 2(2), 17(4); S.I. 2016/815, regs. 2(a), 4(b)

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