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Charity law reforms in force from 1st August

The reforms to charity law contained in the Public Services Reform (Scotland) Act 2010 will be brought into force on 1st August. The Scottish Ministers passed an order setting out the commencement date earlier this month.

From 1st August, the Office of the Scottish Charity Regulator (OSCR) will have power to vary, revoke and review decisions which it has made and power to reorganise a charity by approving new governance provisions which are consistent with the spirit of the charity’s constitution. OSCR will also have power to appoint charity trustees where there is no existing mechanism for appointment. Also from 1st August, the Court of Session will have power to deem individuals to be removed from office as charity trustees.

With effect from the same date, the purchase of trustee indemnity insurance by charities will receive statutory backing, removing any doubt about whether the payment of premiums on such policies fall foul of the remuneration rules under the Charities and Trustee Investment (Scotland) Act 2010.

Further regulations will be passed by Scottish Ministers in due course to extend the “references in documents” regulations to websites. Provisions relating to the reorganisation of restricted funds within a charity are not yet in force but are expected to take effect early in 2011.

For more information on Charity law reform please contact Gavin McEwan on 0131 228 8111 or charities@turcanconnell.com. 

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