Charities and Trustee Investment (Scotland) Act 2005

70 Disqualification: supplementary S

(1) A person who acts as a charity trustee while disqualified by virtue of section 69 [F1 , or (as the case may be) holds an office or employment with senior management functions in the charity while disqualified by virtue of section 69B,] is guilty of an offence and liable—

(a) on summary conviction, to imprisonment for a period not exceeding 6 months or a fine not exceeding level 5 on the standard scale or both,

(b) on conviction on indictment, to imprisonment for a period not exceeding 2 years or a fine or both.

[F2 (2) Any acts done as a charity trustee by a person disqualified by virtue of section 69 from being a charity trustee are not invalid by reason only of the disqualification.]

[F2 (2) Any acts done—

(a) as a charity trustee by a person disqualified by virtue of section 69 from being a charity trustee, or

(b) by a person holding an office or employment with senior management functions in a charity while disqualified by virtue of section 69B from holding such an office or employment in the charity,

are not invalid by reason only of the disqualification.]

(3) In [F3 section 69(2)(b)] [F3 section 69(2)(b)(i)], “undischarged bankrupt” means a person—

(a) whose estate has been sequestrated, who has been adjudged bankrupt or who has granted a trust deed for or entered into an arrangement with creditors, and

(b) who has not been discharged under or by virtue of—

(i) section [F4 137, 138 or 140 of the Bankruptcy (Scotland) Act 2016 ],

F5 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) section 279 or 280 of the Insolvency Act 1986 (c. 45), or

(iv) any other enactment or rule of law subsisting at the time of the person's discharge.

[F6 (4) For the purpose of section 69(2)(b)(ii), “specified bankruptcy-related measure” means—

(a) a bankruptcy restrictions order, interim order or undertaking under the Bankruptcy (Scotland) Act 2016, the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405),

(b) a debt relief restrictions order, interim order or undertaking under the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405),

(c) a moratorium period under a debt relief order under either of those enactments.

(5) For the purposes of section 69(2)(d) and (da), a “relevant order” is—

(a) in England and Wales, an order made—

(i) by the Charity Commission for England and Wales under section 79(4) of the Charities Act 2011 or by the Commission or the Charity Commissioners for England and Wales under a relevant earlier enactment, or

(ii) by the High Court of Justice in England and Wales,

on the grounds of any misconduct or mismanagement in the administration of the charity for which the person was responsible, or which the person knew of and failed to take any reasonable step to oppose, or which the person's conduct contributed to or facilitated,

(b) in Northern Ireland, an order made—

(i) by the Charity Commission for Northern Ireland under section 33(2)(i) of the Charities Act (Northern Ireland) 2008, or

(ii) by the High Court of Justice in Northern Ireland,

on the grounds of any misconduct or mismanagement in the administration of the charity for which the person was responsible, or to which the person was privy, or which the person’s conduct contributed to or facilitated.

(6) In subsection (5)(a), a “relevant earlier enactment” means—

(a) section 79(2)(a) of the Charities Act 2011 (as in force before the commencement of sections 4 and 9 of the Charities (Protection and Social Investment) Act 2016),

(b) section 18(2)(i) of the Charities Act 1993 (power to act for protection of charities),

(c) section 20(1A)(i) of the Charities Act 1960, or

(d) section 20(1)(i) of the 1960 Act (as in force before the commencement of section 8 of the Charities Act 1992).]

Textual Amendments

F1 Words in s. 70(1) inserted (30.6.2025 for specified purposes) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 6(3)(a), 21(2); S.S.I. 2025/168, reg. 2(1)(3), sch. Pt. 1

F2 S. 70(2) substituted (30.6.2025 for specified purposes) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 6(3)(b), 21(2); S.S.I. 2025/168, reg. 2(1)(3), sch. Pt. 1

F3 Words in s. 70(3) substituted (30.6.2025 for specified purposes) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 5(4)(a), 21(2); S.S.I. 2025/168, reg. 2(1)(3), sch. Pt. 1

F4 Words in s. 70(3)(b)(i) substituted (30.11.2016) by Bankruptcy (Scotland) Act 2016 (asp 21), s. 237(2), sch. 8 para. 22(a) (with ss. 232, 234(3), 235, 236); S.S.I. 2016/294, reg. 2

F5 S. 70(3)(b)(ii) omitted (30.11.2016) by virtue of Bankruptcy (Scotland) Act 2016 (asp 21), s. 237(2), sch. 8 para. 22(b) (with ss. 232, 234(3), 235, 236); S.S.I. 2016/294, reg. 2

F6 S. 70(4)-(6) inserted (30.6.2025 for specified purposes) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 5(4)(b), 21(2); S.S.I. 2025/168, reg. 2(1)(3), sch. Pt. 1

Commencement Information

I1 S. 70 in force at 1.4.2006 by S.S.I. 2006/189, art. 2(1), Sch. Pt. 1