40Reorganisation of charities: applications by OSCRS
(1)Where OSCR considers—
(a)that any of the reorganisation conditions is satisfied in relation to a charity, and
(b)that a reorganisation scheme proposed by it or by the charity trustees of the charity will—
(i)where the condition satisfied is that set out in paragraph (a) or (b) of section 42(2), enable the resources of the charity to be applied to better effect for charitable purposes consistently with the spirit of its constitution, having regard to changes in social and economic conditions since it was constituted, or
(ii)where the condition satisfied is that set out in paragraph (c) [F1or (d)] of that section, enable the charity to be administered more effectively,
OSCR may, of its own accord or on the application of the charity trustees of the charity, apply to the Court of Session for approval of the scheme.
(2)The Court of Session may, on an application under subsection (1), approve the proposed reorganisation scheme if it considers that the matters set out in paragraphs (a) and (b) of that subsection are satisfied in relation to the charity to which the application relates.
[F2(2A)But the Court of Session must not approve a reorganisation scheme where—
(a)the reorganisation condition satisfied is that set out in section 42(2)(d), and
(b)the proposed provision would enable the charity to make amendments to its constitution which would not be consistent with the spirit of the constitution.]
(3)The charity trustees of a charity may enter appearance as a party in proceedings on an application under subsection (1) in relation to the charity.
(4)OSCR must, not less than 28 days before making an application under subsection (1), notify the charity in question of its intention to do so.
Textual Amendments
F1Words in s. 40(1)(b)(ii) inserted (1.8.2010) by Public Services Reform (Scotland) Act 2010 (asp 8), ss. 124(2)(a), 134(7); S.S.I. 2010/221, art. 3(2), Sch.
F2S. 40(2A) inserted (1.8.2010) by Public Services Reform (Scotland) Act 2010 (asp 8), ss. 124(2)(b), 134(7); S.S.I. 2010/221, art. 3(2), Sch.
Commencement Information
I1S. 40 in force at 31.5.2007 by S.S.I. 2007/117, art. 2(2)