The Charities and Trustee Investment (Scotland) Act 2005 (Commencement No. 5) Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

This Order is the fifth commencement order under the Charities and Trustee Investment (Scotland) Act 2005 (“the Act”).

This Order brings into force all the provisions of the Act which relate to Scottish charitable incorporated organisations. Those provisions are found in Chapter 7, which establishes a new incorporated legal form that charities may choose to adopt. Known as the Scottish charitable incorporated organisation (SCIO), this new form enables a charity to become a corporate body while continuing to be regulated by the Office of the Scottish Charity Regulator (OSCR).

Section 64 of the Act comes into force on 21st January 2011. This section allows the Scottish Ministers to make regulations setting out further provision in relation to SCIOs.

Sections 50 and 52 of the Act come into force on 21st January 2011 for the purpose of enabling regulations to be made. Section 50 allows the Scottish Ministers to make regulations specifying other matters (beyond those in that section) which a SCIO’s constitution must contain. Section 52 allows the Scottish Ministers to specify in regulations the documents on which a SCIO’s name must appear. Sections 50 and 52 come into force for all other purposes on 1st April 2011.

Sections 49, 51, 53 to 55, 62 and 63 come into force on 1st April 2011.

Section 49 sets out the basic requirements for a charity to become a SCIO. Section 51 places on the members of a SCIO the general duty set out at section 66(1)(a), (3) and (4) of the Act. Section 53 creates an offence of issuing or authorising the issue of certain documents, as well as signing or authorising the signature of those same documents. Sections 54 and 55 set out the procedure for applying to create a SCIO, and be registered as such, as well as the effect of such registration. Section 62 makes provision for third parties dealing with a SCIO and is intended to provide a level of protection to those third parties. Section 63 allows a SCIO to amend its constitution by way of resolution in accordance with that section.

Sections 56 to 61 of the Act come into force on 1st January 2012. Sections 56 to 58 make provision in relation to conversion from other forms into SCIO form. Sections 59 and 60 set out the procedure for the amalgamation of two or more SCIOs into one new SCIO. Section 61 allows a SCIO to transfer its property, rights and liabilities to another SCIO, if OSCR confirms this.