Q&As

A charities constitution says it has to have a minimum of four trustees to make decisions. Two trustees have recently resigned going against the constitution rules and leaving the charity with three trustees. The trustees resigned as they refused to agree with a specific action that needed to be taken for the company to start operating again after coronavirus (COVID-19). The remaining trustees cannot appoint new trustees as they cannot get anyone willing to do the role because of the disagreements. What can the remaining trustees do in this situation to protect their liability if they are not able to make decisions as per their constitution? Is there any other way they can make decisions?

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Published on: 08 September 2020
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It is unclear from the question how the Charity is constituted. For the purposes of this response we have assumed that it is either a Private company limited by guarantee or a charitable incorporated organisation (CIO) (as described in Practice Note: Charities—governing documents).

In the case of the CIO, it has been further assumed that the ‘foundation’ model of CIO has been adopted, which allows only

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Rules definition
What does Rules mean?

The detailed provisions of a pension scheme.

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