Welcome to Constitutions Corners - these articles are a series of updates and informative legal advice published in Thrive Magazine as regular feature for our readers and republished here as a resource for our website users.
Surprisingly, many voluntary organisations seem unaware of the importance of ensuring that they have enough people on their Board or management committee to be able to operate legally.
Many voluntary organisations, particularly those that employ staff, hold contracts or own buildings or leases, are incorporated bodies. Usually this takes the form of organisations being a Company Limited by Guarantee, or a ‘CIC’ if you are a social enterprise, so company law applies.
The Companies Act 2006 is the largest piece of UK legislation ever!
The changes have been brought in gradually and the main final phase applies from this October.
Until recently many established charities were presumed in law to operate for the public benefit.
To counter the potential for abuse by, for example, private schools, the Charities Act 2006 made it a requirement that all charities would have to exist for a wider public benefit and to report on how they had delivered on this as part of the accountability of their continuing charitable status.
What is the legal meaning of a structure for a community group, voluntary organisation or similar “Third Sector” body?
One of the biggest misunderstandings I come across is that “being a charity” is, in itself, a form of legal structure. In fact being “charitable” is more a description of a special combination of particular features that an organisation may have – regardless of its actual legal form or structure.
