Section 39 - Existing companies: charities
235.This section contains additional provisions applying to an existing company that wishes to become a CIC and that has charitable status. These provisions do not apply to companies that are "Scottish charitable companies" as defined in section 40(8), to which section 40 will apply instead (subsection (4)). The key procedural provision is that the Charity Commissioners must consent to the change of name required under section 37(1)(c), and thus to conversion to CIC status (subsection (1)). The Charity Commissioners have a right to apply to the High Court for an order quashing the conversion of any charity that was made without their consent (subsection (2)). The Charity Commissioners’ right to apply for such an order is, of course, without prejudice to the power of the Attorney General to apply to court to quash a registration which has been improperly or erroneously allowed. The section also provides that the assets held by the charitable company at the moment of its conversion to a CIC must remain applicable to the company’s original charitable purposes (subsection (3)).
