Charity Proceedings and Trustee Disputes
Disputes involving charities and trustees can be complex, sensitive, and time critical. Whether you're dealing with a disagreement between trustees, uncertainty over the interpretation of your governing documents, or an investigation by the Charity Commission, it’s important to have clear and practical advice from the outset. Our experienced team can help you understand your position, manage risk, and find the most effective way forward, whilst protecting the interests and reputation of your charity.
Governance documents
The first port of call in any charity or trustee dispute is to consider the content of the documents governing the operation of the charity. We will work with you to review and interpret the governance documents and advise you on their scope.
Trustee duties
Charity trustees have important legal responsibilities. These duties include, acting in the charity’s best interests, managing its resources responsibly, and exercising reasonable skill and care when making decisions. If concerns arise about how those duties have been carried out, we can support you conduct an internal investigation and consider the regulatory aspect of any potential breaches.
The Charity Commission
The Charity Commission has extensive powers to investigate concerns about the way a charity is managed and governed. In some cases, this can include requesting information, opening a statutory inquiry or taking regulatory action against the charity or its trustees. We can support with you any regulatory action taken by The Charity Commission and expertly guide you through to reach a satisfactory outcome.
Litigation against third parties
Not every dispute involving a charity relates to its trustees or internal governance. Your charity may find itself in a disagreement with a third party that affects its operations, finances, or reputation. Whatever the nature of the dispute, we’ll work closely with you to understand your objectives and pursue a practical resolution.
Alternative dispute resolution
Charity trustees have a duty to manage resources responsibly, which means considering the most cost-effective way to resolve a dispute. Reputation is an important consideration for charities, so in many cases, reaching an agreement through negotiation, or another form of alternative dispute resolution may be more suitable. We will advise you on suitable methods to explore and work with you to implement a settlement strategy.
Questions we’re often asked
It depends on the nature of the litigation. If the dispute concerns the internal administration or domestic affairs of the charity, then yes. If a dispute relates to an unconnected matter such as a claim of breach of contract against a third party for a service supplied to the charity, it is unlikely consent will be needed.
Yes, a trustee of a charity can be liable personally both to the charity for breaches of their obligations and also to third parties in certain circumstances. If you are facing action, we can support you through it.
Yes a trustee can be removed. The charity’s governing document will likely contain specific provisions relating to the process and grounds for removal of trustees. Advice should be sought at an early stage if you are considering removing a trustee. The Charity Commission and the court also have powers to remove a trustee.
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