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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

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
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