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26 March 2021 / Natasha Jackson , Katharine Bailey
Issue: 7926 / Categories: Features , Charities
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Charities, trustees, directors & disqualification

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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

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MOVERS & SHAKERS

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
Britain’s new acknowledgement that Israel’s occupation is unlawful, and accompanying settlement-goods ban and sanctions, is significant but overdue, argue Danny Friedman KC and Victor Kattan in NLJ this week
New planning fee rises, wider trade union access rights and a service-by-email trap feature in Stephen Gold’s latest Civil Way
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
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