This page contains information that has appeared on Sandy Adirondack's legal update website for voluntary organisations at www.sandy-a.co.uk/legal.htm. For current updates, including potential changes that are in the pipeline, see the legal update website.

These websites for each chapter update the 2nd edition of The Voluntary Sector Legal Handbook by Sandy Adirondack and James Sinclair Taylor (Directory of Social Change, 2001). The websites are not intended as a comprehensive update and should not be treated as such.

To order a copy of The Voluntary Sector Legal Handbook, print out the order form at www.sandy-a.co.uk/bookserv.htm or send an email order by clicking . It costs £50 for voluntary organisations or £80 for others, plus 10% p&p. We expect the third edition to be published in 2007.

The information here covers the law applicable to England and Wales. It may not apply in Northern Ireland and/or Scotland. These news items are not a full or definitive statement of the law and are not intended as a substitute for professional legal advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting can be taken by the author.

Chapter 9
BRANCHES, SUBSIDIARIES, PARTNERSHIPS AND MERGERS

THE CHARITIES ACT 2006

Updated 8/12/06.
The Office of the Third Sector announced on 5 December 2006 the proposed timetable for implementation of the Charities Act 2006. The Act, which received royal assent on 8 November 2006, will come into effect in stages over the next two years, with the first commencement order expected in early 2007, the second in the second half of 2007, and the third in early 2008.

The Act (in pdf format) is at www.opsi.gov.uk/acts/acts2006/ukpga_20060050_en.pdf, and in html format at www.opsi.gov.uk/acts/acts2006/20060050.htm.
Explanatory notes to the Act are at www.opsi.gov.uk/acts/en2006/2006en50.htm.
The Charity Commission's guide to the main provisions is at www.charitycommission.gov.uk/spr/ca2006prov.asp.
For the Office of the Third Sector's implementation timetable click here (the address is too long to show on screen).

Charities Act 2006: Not yet in effect
CHARITY MERGERS

Updated 23/2/07. This information updates ss.9.9, 57.12 & 57.13 in The Voluntary Sector Legal Handbook 2nd edition.
When the relevant provisions come into effect (expected second half of 2007), two types of "merger" will be defined: one where one charity (or more) transfers all its property to another charity, and the first one ceases to exist; and one where two or more charities create a new charity and transfer all their property to it, and then cease to exist. The Charity Commission will establish a register of such mergers. The process for transferring property in such a merger will be simplified, and there will be new provisions ensuring that gifts such as legacies which fall due after a charity has merged and ceased to exist will be treated as if they had been made to the the existing charity.

These provisions are in s.44 of the Charities Act 2006, which inserts new ss.75C-75F to the Charities Act 1993. For links to the Acts and guidance, see The Charities Act 2006.

The new provisions do not apply to other sorts of merger, for example when part (but not all) of one charity merges with another, or when one charity becomes a subsidiary of another.

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