The CCEW have the statutory power to disqualify individuals from acting as a trustee, which would also disqualify such individuals from holding senior management positions within the charity or charities concerned. The power enables the CCEW to disqualify, for a proportionate period, individuals who are unfit to be a trustee so as to protect an individual charity, charities in general or other trustees and the public. The CCEW may only make such an order where it is satisfied of three things:
- one of six conditions are met, including being cautioned or convicted of an offence or found by HMRC not to be a ‘fit and proper person’ to be the manager of a body or trust. Other conditions relate to misconduct or mismanagement in relation to a charity, or to acting in some way that is likely to be damaging to public trust and confidence in a charity or charities
- the individual is unfit to be a trustee and
- such an order is desirable in order to protect public trust and confidence in the sector.
The CCEW recognises that this is a significant new power and has issued a policy paper showing how it proposes to use it. A consultation, now closed, sought views about its proposed approach. Once the feedback has been analysed, we will advise you of the outcome.