Commission to launch consultation on trustee disqualification power

The Charity Commission will today  (23/05/2016) open a consultation on its new power to disqualify trustees, which the government has revealed will come into force in July.

On Friday, the Cabinet Office released its timetable for bringing the Charities (Protection and Social Investment) Act into force, which says there will be a consultation on the regulator’s new power to disqualify trustees it deems likely to damage the reputation of a charity. The commission said the consultation would be opened today.

The timetable says the commission’s new power to issue warnings for low or medium-level concerns that do not warrant a full statutory inquiry would be available from October.

The power to disqualify will allow the commission to remove trustees and prevent them from holding further board or senior management positions at charities if they have been responsible for or aware of misconduct or mismanagement at a charity, but also if the commission deems any past or continuing behaviour to be likely to damage public trust in charities.

The power has been criticised by sector leaders and groups as too broad and allowing the commission too much discretion.

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