Sub-Clause (7) provides that the Charity Commission may refuse to confirm a resolution transferring the undertaking of one CIO to another (the transferee CIO), if it is not satisfied that certain provisions in the transferee CIO’s constitution are the same (or substantially the same) as the equivalent provisions in the constitution of the transferor CIO. The relevant provisions are:

2. A basic principle of charity law is that assets dedicated to certain charitable purposes must only ever be applied for those purposes. If the transferee CIO’s constitution differs from that of the transferor CIO in one or more of the ways listed in sub-section (7), then this principle could be offended. In other words, sub-section (7) is aimed at protecting charitable assets. As such, in the Charity Law Association’s view, it is unobjectionable.