Charities, trustees, directors & disqualification

26 March 2021 / Natasha Jackson , Katharine Bailey

Issue: 7926 / Categories: Features , Charities

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

Muckle LLP—Rachael Chapman

Sports, education and charities practice welcomes senior associate

Ellisons—Carla Jones

Partner and head of commercial litigation joins in Chelmsford

Freeths—Louise Mahon

Firm strengthens Glasgow corporate practice with partner hire

NEWS

Read All

Stress at work for corporate counsel

One in five in-house lawyers suffer ‘high’ or ‘severe’ work-related stress, according to a report by global legal body, the Association of Corporate Counsel (ACC)

Chancery Lane says no to LeO

The Legal Ombudsman’s (LeO’s) plea for a budget increase has been rejected by the Law Society and accepted only ‘with reluctance’ by conveyancers

Human rights concerns for patients, prisoners & immigration detainees

Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned

Licensing fast-track for conveyancing & probate professionals

Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals

Stress at work? Join the (employment tribunal claim) queue

Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace

Error message

Charities, trustees, directors & disqualification

MOVERS & SHAKERS

Muckle LLP—Rachael Chapman

Ellisons—Carla Jones

Freeths—Louise Mahon