Charities, trustees, directors & disqualification

Natasha Jackson & Katharine Bailey explore the implications of the Kids Company litigation for charities & their directors

In February, the High Court dismissed the disqualification case against the trustees and CEO of the charity Kids Company, finding that its founder was not a director and that none of the defendants were unfit to be directors.
This was the first case in which the court had to decide whether a CEO of a charity would be a de facto director of that charity.
The decision has crucial implications for the charity sector and the volunteers upon which it depends to function.

Kids Company was founded in 1996 by Camila Batmanghelidjh (pictured) to support the most vulnerable children who fell through the cracks in mainstream services. Despite securing hundreds of millions of pounds in donations from celebrity donors and winning more than £42m in government grants, the ever-increasing demand for Kids Company’s services led to financial difficulties for the charity. It collapsed in 2015 in the wake of unfounded allegations

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

Charities, trustees, directors & disqualification

Natasha Jackson & Katharine Bailey explore the implications of the Kids Company litigation for charities & their directors

In February, the High Court dismissed the disqualification case against the trustees and CEO of the charity Kids Company, finding that its founder was not a director and that none of the defendants were unfit to be directors.
This was the first case in which the court had to decide whether a CEO of a charity would be a de facto director of that charity.
The decision has crucial implications for the charity sector and the volunteers upon which it depends to function.

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

SourceURL:

Links:

E-newsletter Sign-Up

MOVERS & SHAKERS

Read All

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

HFW—Simon Petch

Global shipping practice expands with experienced ship finance partner hire

Freeths—Richard Lockhart

Infrastructure specialist joins as partner in Glasgow office

NEWS

Read All

NLJ this week: No such thing as a ‘Welsh seat’

Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot

NLJ this week: Jury reform risks justice for efficiency’s sake

The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’

NLJ this week: Crypto fightback offers ‘new frontier for law’

A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes

NLJ this week: Time to revive the duty to report crime?

After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent

NLJ this week: When are experts truly ‘necessary’?

Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25

Error message

Charities, trustees, directors & disqualification

MOVERS & SHAKERS

Jurit LLP—Caroline Williams

HFW—Simon Petch

Freeths—Richard Lockhart