New duties for trustees of charitable companies
Companies Act 2006 now in force
Trustees of charities that are also limited companies should be fully aware of the new requirements imposed on them by the Companies Act 2006.
These relate to conflicts of interest, authorisation of transactions with trustees, and dealing with charity property. There are now specified procedures that must be followed in certain situations. If the procedures are not followed there may be criminal implications.
Clients of the practice should by now have received their free ACCA booklet on the subject. Non clients requiring a copy should send a cheque for £5 payable to Peter Brown & Co to Acomb Grange, Grange Lane, York, with a stamped addressed envelope.
In some cases, the provisions of the Charities Acts may be even more onerous than the new duties under the Companies Act, so detailed advice may be needed.