Change 1 Article Choose an article Title and introductory text 1 Meaning of “charity” 2 Meaning of “charitable purpose” 3 Descriptions of purposes 4 The public benefit requirement 5 Recreational and similar trusts, etc. 6 Registered sports clubs 7 Application of this Chapter in relation to Scotland 8 Application of this Chapter in relation to Northern Ireland 9 Interpretation 10 Ecclesiastical corporations etc. not charities in certain contexts 11 Charitable purposes 12 Directions as to what is (or is not) a separate charity 13 The Charity Commission 14 The Commission's objectives 15 The Commission's general functions 16 The Commission's general duties 17 Guidance as to operation of public benefit requirement 18 Supply by Commission of copies of documents 19 Fees and other amounts payable to Commission 20 Incidental powers 21 The official custodian for charities 22 Meaning of “exempt charity” and Sch.3 23 Power to amend Sch.3 so as to add or remove exempt charities 24 Power to remove defunct institutions from Sch.3 25 Meaning of “the principal regulator” 26 General duty of principal regulator in relation to exempt charity 27 Power to make amendments in connection with s.26 28 Commission to consult principal regulator 29 The register 30 Charities required to be registered: general 31 Restrictions on extending the range of excepted charities etc. 32 Power to alter sums specified in s.30(2) 33 Power to repeal provisions relating to excepted charities 34 Removal of charities from register 35 Duties of trustees in connection with registration 36 Claims and objections to registration 37 Effect of registration 38 Right to inspect register 39 Statement required to be made in official publications etc. 40 Power to alter sum specified in s.39(1) 41 Offences 42 Power to require name or working name to be changed 43 Duty of charity trustees on receiving direction under s.42 44 Change of name not to affect existing rights and obligations etc. 45 Change of name where charity is a company 45A Power to delay registration following s. 42 direction 45B Power to delay entry of name in register following a s. 42 direction 46 General power to institute inquiries 47 Obtaining evidence etc. for purposes of inquiry 48 Power to obtain search warrant for purposes of inquiry 49 Execution of search warrant 50 Publication of results of inquiries 51 Contributions by local authorities to inquiries into local charities 52 Power to call for documents 53 Power to search records 54 Disclosure to Commission: general 55 Disclosure to Commission: Revenue and Customs information 56 Disclosure by Commission: general 57 Disclosure by Commission: Revenue and Customs information 58 Disclosure to and by principal regulators of exempt charities 59 Disclosure: supplementary 60 Supply of false or misleading information to Commission etc. 61 Duty of trustees in relation to application of property cy-près 62 Occasions for applying property cy-près 63A Failure of specific charitable purposes: application cy-près 66 Section 63A: supplementary 67 Cy-près schemes 67A Proceeds of fund-raising: power of charity trustees to apply cy-près 68 Charities governed by charter, or by or under statute 69 Commission's concurrent jurisdiction with High Court for certain purposes 70 Restrictions on Commission's concurrent jurisdiction 71 Exercise of Commission's concurrent jurisdiction: notice 72 Power to alter sum specified in s.70(3) 73 Powers to make schemes altering provision made by Acts, etc. 74 Restriction on expenditure on promoting Bills 75 Further powers to alter application of charitable property 75ZA Power of the court and the Commission to make schemes 75A Official warnings by the Commission 76 Suspension of trustees etc. and appointment of interim managers 76A Exercise of powers where section 76(1)(a) applies 77 Offence of contravening certain orders under s.76 78 Interim managers: supplementary 79 Removal of trustee or officer etc for protective etc purposes 79A Removal of disqualified trustee 80 Other powers to remove or appoint charity trustees 81 Removal or appointment of charity trustees etc.: supplementary 82 Removal of trustees etc.: notice 83 Power to suspend or remove trustees etc. from membership of charity 84 Power to direct specified action to be taken 84A Power to direct specified action not to be taken 84B Power to direct winding up 85 Power to direct application of charity property 86 Copy of certain orders, and reasons, to be sent to charity 87 Supervision by Commission of certain Scottish charities 88 Publicity relating to schemes 89 Publicity for orders relating to trustees or other individuals 90 Entrusting charity property to official custodian, and termination of trust 91 Supplementary provisions as to property vested in official custodian 92 Divestment of official custodian where 1987 Act due to operate 93 Divestment of official custodian where 1987 Act has operated 94 Vesting of land in relevant charity trustees following divestment 95 Supplementary provisions in connection with 1987 Act 96 Power to make common investment schemes 97 Bodies which may participate in common investment schemes 98 Provisions which may be included in common investment schemes 99 Further provisions relating to common investment schemes and funds 100 Power to make common deposit schemes 101 Bodies which may participate in common deposit schemes 102 Provisions which may be included in common deposit schemes 103 Further provisions relating to common deposit schemes and funds 104 Meaning of “Scottish recognised body” and “Northern Ireland charity” 104A Investment of endowment fund on total return basis 104AA Total return investment: social investments 104B Total return investment: regulations 105 Power to authorise dealings with charity property etc. 106 Power to authorise ex gratia payments etc. 107 Power to direct transfer of credits in dormant bank accounts 108 Accounts which cease to be dormant before transfer 109 Dormant bank accounts: supplementary 110 Power to give advice 111 Power to determine membership of charity 112 Power to order assessment of solicitor's bill 113 Petitions for winding up charities under Insolvency Act 114 Proceedings by the Commission 115 Proceedings by other persons 116 Effect of provisions relating to vesting or transfer of property 117 Restrictions on dispositions of land: general 118 Meaning of “connected person” in s.117(2) 119 Requirements for dispositions other than certain leases 120 Requirements for leases which are for 7 years or less or which are assured tenancies etc. 121 Additional restrictions where land held for stipulated purposes 122 Instruments concerning dispositions of land: required statements, etc. 123 Charity land and land registration 124 Restrictions on mortgages 125 Mortgages: required statements, etc. 126 Mortgages of charity land and land registration 127 Release of charity rentcharges 128 Power to alter sum specified in s.127(2) 128A Advice etc from charity trustees, officers and employees 129 Interpretation 130 Accounting records 131 Preservation of accounting records 132 Preparation of statement of accounts 133 Account and statement an option for lower-income charities 134 Preservation of statement of accounts or account and statement 135 Charitable companies 136 Exempt charities 137 Accounting records 138 Preparation of group accounts 139 Exceptions to requirement to prepare group accounts 140 Preservation of group accounts 141 “Parent charity”, “subsidiary undertaking” and “group” 142 “Group accounts” 143 Exempt charities 144 Audit of accounts of larger charities 145 Examination of accounts an option for lower-income charities 146 Commission's powers to order audit 147 Accounts required to be audited under Companies Act 148 NHS charities: general 149 Audit or examination of English NHS charity accounts 150 Audit or examination of Welsh NHS charity accounts 151 Audit of accounts of larger groups 152 Examination of accounts an option for smaller groups 153 Commission's powers to order audit of group accounts 154 Regulations relating to audits and examinations 155 Power of Commission to direct compliance with certain regulations 156 Duty of auditors etc. to report matters to Commission 157 Meaning of “connected institution or body” in s.156(2) 158 Application of duty in relation to auditors etc. of group accounts 159 Application of duty in relation to Companies Act auditors 160 Exempt charities 161 Excepted charities 162 Charity trustees to prepare annual reports 162A Annual reports: fund-raising standards information 163 Transmission of annual reports to Commission in certain cases 164 Documents to be transmitted with annual report 165 Preservation of annual reports etc. 166 Annual reports and group accounts 167 Exempt charities 168 Excepted charities 169 Annual returns by registered charities 170 Public inspection of annual reports etc. kept by Commission 171 Supply by charity trustees of copy of most recent annual report 172 Supply by charity trustees of copy of most recent accounts 173 Offences of failing to supply certain documents 174 Powers to alter certain sums specified in this Part 175 Aggregate gross income of group 176 Larger groups: “relevant income threshold” and “relevant assets threshold” 177 Meaning of “charity trustees” 178 Persons disqualified from being charity trustees or trustees of a charity 178A Case A: specified offences 179 Disqualification: pre-commencement events etc. 180 Disqualification: exceptions in relation to charitable companies 181 Power to waive disqualification 181A Disqualification orders 181B Duration of disqualification, and suspension pending disqualification 181C Disqualification orders: procedure 181D Disqualification orders: variation and revocation 182 Records of persons removed from office 183 Criminal consequences of acting while disqualified 184 Civil consequences of acting while disqualified 184A Sections 183 and 184: participation in corporate decisions 184B Power to confirm trustee appointments etc 185 Remuneration of charity trustees or trustees etc. providing goods or services to charity 186 Disqualification of charity trustee or trustee receiving remuneration under s.185 186A Remuneration etc for work already carried out 187 Meaning of “benefit”, “remuneration”...etc. 188 Meaning of “connected person” 189 Indemnity insurance for charity trustees and trustees 190 Power to amend s.189 191 Commission's power to relieve trustees and auditors etc. from liability 192 Court's power to grant relief to apply to all auditors etc. of charities which are not companies 193 Meaning of “charitable company” 194 Requirement to disclose charitable status 195 Civil consequences of failure to make required disclosure 196 Criminal consequences of failure to make required disclosure 197 Alteration of objects by bodies corporate and charitable status 198 Alteration of objects by companies and Commission's consent 199 Meaning of “benefit” in s.198(2) 200 Meaning of “connected person” in s.198(2) 201 Consent of Commission required for approval etc. by members of charitable companies 202 Consent of Commission required for certain acts of charitable company 203 Application for restoration of charitable company to register 204 Meaning of “CIO” 205 Nature 206 Constitution 207 Application for CIO to be constituted and registered 208 Cases where application must or may be refused 209 Registration of CIO 210 Effect of registration of CIO 211 Name 212 Status 213 Civil consequences of failure to disclose name or status 214 Offence of failing to disclose name or status 215 Offence of holding out that a body is a CIO 216 Powers of CIO 217 Constitutional requirements 218 Third parties 219 Limits to s.218 220 Duty of CIO members 221 Duties of charity trustees 222 Personal benefit and payments 223 Regulations about procedure of CIOs 224 Amendment of constitution and procedure 225 Amendment of constitution and charitable status 226 Amendment of constitution and Commission's consent 227 Registration and coming into effect of amendments 228 Application for conversion by charitable company 229 Application for conversion by registered society 230 Commission to consult appropriate registrar and others 231 Cases where application must or may be refused 232 Provisional and final registration of converting body 233 Effect of registration becoming final 234 Conversion of community interest company 235 Application for amalgamation of CIOs 236 Notice of application for amalgamation 237 Cases where application must or may be refused 238 Registration of amalgamated CIO 239 Effect of registration 240 Resolutions about transfer of CIO's undertaking to another CIO 241 Notice of transfer of CIO's undertaking to another CIO 242 Cases where confirmation of resolution must or may be refused 243 Confirmation of resolution 244 Effect of confirmation of resolution 245 Regulations about winding up, insolvency and dissolution 246 Power to make further provision about CIOs 247 Meaning of “CIO regulations” 247A Regulations about moratorium for certain CIOs 248 Meaning of “benefit” 249 Meaning of “connected person” 250 Effect of provisions relating to vesting or transfer of property 251 Incorporation of charity trustees 252 Estate to vest in incorporated body 253 Gifts to take effect as gifts to incorporated body 254 Liability of charity trustees not affected by incorporation 255 Charity trustees bound by conditions in certificate etc. 256 Applications for incorporation 257 Requirement to be met before certificate is granted 258 Certificate conclusive as to compliance with incorporation requirements etc. 259 Filling up of vacancies in charity trustees 260 Execution of documents by incorporated body: general 261 Conferral of authority to execute documents 262 Amendment of certificate of incorporation 263 Dissolution of incorporated body 264 Records of applications and certificates 265 Meaning of “incorporated body” and “relevant charity” 266 Effect of provisions relating to vesting or transfer of property 267 Introduction 268 Resolution to transfer all property 269 Notice of, and information about, resolution to transfer property 270 General rule as to when s.268 resolution takes effect 271 S.268 resolution not to take effect or to take effect at later date 272 Transfer of property in accordance with s.268 resolution 273 Transfer where charity has permanent endowment: general 274 Requirements relating to permanent endowment 275 Resolution to replace purposes of unincorporated charity 276 Notice of, and information about, s.275 resolution 277 General rule as to when s.275 resolution takes effect 278 S.275 resolution not to take effect or to take effect at a later date 279 Replacement of purposes in accordance with s.275 280 Power to modify powers or procedures of unincorporated charity 280A Amendment of the trusts of an unincorporated charity 280B S. 280A: supplementary provision 280C Power to amend Royal charter 281 Power of ... charities to spend capital: general 282 Resolution to spend larger fund ... 283 Notice of, and information about, s.282 resolution 284 When and how s.282 resolution takes effect 284A Power to borrow from permanent endowment: general 284B Calculation of the “permitted amount” 284C Calculation of the “maximum estimated capital appreciation” 284D Inability to repay 285 Power to alter sums etc specified in this Part 286 Effect of provisions relating to vesting or transfer of property 292A Meaning of “social investment” 292B General power to make social investments 292C Charity trustees' duties in relation to social investments 293 Meaning of “local charity” 294 Local authority's index of local charities 295 Reviews of local charities by local authority 296 S.294 and s.295: supplementary 297 Co-operation between charities, and between charities and local authorities 298 Transfer of property to parish or community council or its appointees 299 Local authorities' power to appoint representative trustees 300 Powers of appointment deriving from pre-1894 powers 301 Powers of appointment deriving from pre-1927 powers 302 Term of office of trustees appointed under s.299 to s.301 303 S.298 to s.302: supplementary 304 Effect of provisions relating to vesting or transfer of property 305 Register of charity mergers 306 Meaning of “relevant charity merger” etc. 307 Notification of charity mergers 308 Details to be entered in register of charity mergers 309 Right to inspect register of charity mergers 310 Pre-merger vesting declarations 311 Effect of registering charity merger on gifts to transferor 312 “Transferor” and “transferee” etc. in s.310 and s.311 313 Effect of provisions relating to vesting or transfer of property 314 Exception for CIOs 315 The Tribunal 316 Rules relating to appeals, applications or references 317 Appeal from Tribunal 318 Intervention by Attorney General 319 Appeals: general 320 Appeals: orders under s.52 321 Reviews 322 Reviewable matters 323 Remission of matters to Commission 324 Power to amend provisions relating to appeals and applications to Tribunal 324A Power to authorise costs to be incurred in relation to proceedings 325 References by Commission 326 References by Attorney General 327 Powers of Commission in relation to matters referred to Tribunal 328 Suspension of time limits while reference is in progress 329 Agreement for Commission to act while reference is in progress 330 Appeals and applications in respect of matters determined on references 331 Interpretation 331A Limited power for charity trustees to make ex gratia payments etc 331B Power to alter sums specified in s.331A 332 Manner of giving notice of charity meetings, etc. 333 Conferral of authority to execute documents 334 Transfer and evidence of title to property vested in trustees 334A Status of certain trustees of charitable trusts 335 Enforcement of requirements by order of Commission 336 Enforcement of orders of Commission 337 Other provisions as to orders etc of Commission 338 Directions of the Commission or person conducting inquiry 339 Service of orders and directions 340 Enrolment and deposit of documents etc. 341 Evidence of documents received by Commission etc. 342 Report of inquiry to be evidence in certain proceedings 343 Evidence of documents issued by Commission etc. 344 Other miscellaneous provisions as to evidence 345 Restriction on institution of proceedings for certain offences 346 Offences by bodies corporate 347 Regulations and orders: general 348 Regulations subject to affirmative procedure etc. 349 Orders subject to affirmative procedure etc. 350 Connected person: child, spouse and civil partner 351 Connected person: controlled institution 352 Connected person: substantial interest in body corporate 352A Power to amend definition of “connected person” 353 Minor definitions 354 Amendments etc. 355 Commencement 356 Extent 357 Index of defined expressions 358 Short title SCHEDULE 1 The Charity Commission SCHEDULE 2 The official custodian SCHEDULE 3 Exempt charities SCHEDULE 4 Enlargement of areas of local charities SCHEDULE 5 Court's jurisdiction over certain charities governed by or under statute SCHEDULE 6 Appeals and applications to Tribunal SCHEDULE 7 Consequential amendments SCHEDULE 8 Transitionals and savings SCHEDULE 9 Transitory modifications SCHEDULE 10 Repeals and revocations SCHEDULE 11 Index of defined expressions
What to do with it
As published
198 Alteration of objects by companies and Commission's consent
(1) Any regulated alteration by a charitable company—
(a) requires the prior written consent of the Commission, and
(b) is ineffective if such consent has not been obtained.
(2) The following are regulated alterations—
(a) an amendment of the company's articles of association which alters the charitable purposes of the company,
(b) any alteration of any provision of its articles of association directing the application of property of the company on its dissolution, and
(c) any alteration of any provision of its articles of association where the alteration would provide authorisation for any benefit to be obtained by directors or members of the company or persons connected with them.
(2A) In considering whether to consent to an alteration falling within subsection (2)(a) the Commission must have regard to—
(a) the purposes of the company when it was established, if and so far as they are reasonably ascertainable,
(b) the desirability of securing that the purposes of the company are, so far as reasonably practicable, similar to the purposes being altered, and
(c) the need for the company to have purposes which are suitable and effective in the light of current social and economic circumstances.
(3) Where a company that has made a regulated alteration in accordance with subsection (1) is required—
(a) by section 26 of the Companies Act 2006 to send to the registrar of companies a copy of its articles as amended,
(b) by section 30 of that Act to forward to the registrar a copy of the special resolution effecting the alteration, or
(c) by section 31 of that Act to give notice to the registrar of the amendment,
the copy or notice must be accompanied by a copy of the Commission's consent.
(4) If more than one of those provisions applies and they are complied with at different times, the company need not send a further copy of the Commission's consent if a copy was sent on an earlier occasion.
(5) Subsections (2) to (4) of section 30 of that Act (offence of failing to comply with section 30) apply in relation to a failure to comply with subsection (3) as in relation to a failure to comply with that section.
Your wording
Your change, as a redline
198 Alteration of objects by companies and Commission's consent
(1) Any regulated alteration by a charitable company—
(a) requires the prior written consent of the Commission, and
(b) is ineffective if such consent has not been obtained.
(2) The following are regulated alterations—
(a) an amendment of the company's articles of association which alters the charitable purposes of the company,
(b) any alteration of any provision of its articles of association directing the application of property of the company on its dissolution, and
(c) any alteration of any provision of its articles of association where the alteration would provide authorisation for any benefit to be obtained by directors or members of the company or persons connected with them.
(2A) In considering whether to consent to an alteration falling within subsection (2)(a) the Commission must have regard to—
(a) the purposes of the company when it was established, if and so far as they are reasonably ascertainable,
(b) the desirability of securing that the purposes of the company are, so far as reasonably practicable, similar to the purposes being altered, and
(c) the need for the company to have purposes which are suitable and effective in the light of current social and economic circumstances.
(3) Where a company that has made a regulated alteration in accordance with subsection (1) is required—
(a) by section 26 of the Companies Act 2006 to send to the registrar of companies a copy of its articles as amended,
(b) by section 30 of that Act to forward to the registrar a copy of the special resolution effecting the alteration, or
(c) by section 31 of that Act to give notice to the registrar of the amendment,
the copy or notice must be accompanied by a copy of the Commission's consent.
(4) If more than one of those provisions applies and they are complied with at different times, the company need not send a further copy of the Commission's consent if a copy was sent on an earlier occasion.
(5) Subsections (2) to (4) of section 30 of that Act (offence of failing to comply with section 30) apply in relation to a failure to comply with subsection (3) as in relation to a failure to comply with that section.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.