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The Charitable Incorporated Organisations (Consequential Amendments) Order 2012
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- UK Statutory Instruments
- 2012 No. 3014
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EXPLANATORY NOTE
(This note is not part of the Order)
This Order makes amendments in consequence of the implementation of the provisions of the Charities Act 2011 relating to charitable incorporated organisations (“CIOs”). See also the Charitable Incorporated Organisations (General) Regulations 2012 (S.I. 2012/3012) and the Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012 (S.I. 2012/3013).
Although some of the amendments are to statutory provisions that extend to England and Wales and to Scotland, this Order extends to England and Wales only.
The Employment Rights Act 1996 is amended (articles 3 and 4) so that an employee of an insolvent CIO can apply to the Secretary of State for a payment out of the National Insurance Fund in respect of an unpaid redundancy payment (under section 166) or other unpaid debt (under section 182) in the same circumstances as an employee of an insolvent company.
The Company Directors Disqualification Act 1986 (“the 1986 Act”) is amended (article 2) so that a CIO charity trustee can be disqualified in the same circumstances as a company director, and a disqualified person (whether a former company director or CIO charity trustee) is not able to act as a company director or CIO charity trustee in England and Wales. Under charity law in England and Wales a person disqualified under the 1986 Act is not able to act as a trustee of any other form of charity (section 178 of the Charities Act 2011). Certain provisions of the Charities Act 2011, relating to general disqualifications from being a trustee of a charity, are amended in consequence of the amendment to the 1986 Act (articles 5 to 7).
The Charities Act 2011 is also amended (article 8) by adding to the list of appeals and applications that may be brought to the Tribunal, so that certain decisions and orders of the Charity Commission relating to the dissolution of CIOs come within the Tribunal’s jurisdiction. The list is in Schedule 6 to that Act, and it already includes other decisions of the Charity Commission relating to CIOs.
An impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.
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