CHARITIES BILL
Amendments 175 and 176
175: Page 43 line 16: leave out from “others” to end of line 17
176: Page 43 line 19: leave out from “them” to second “all” and insert “transfer”
A charity merger does not necessarily result in one or more of the transferors ceasing to exist and this should not, therefore, be a necessary part of the definition of a charity merger. There are many instances where one or more transferors might need to have a residual existence. To give three common examples:
the merger could involve the transfer of a separable part of a transferor's operations;
the intention may be for a transferor legal entity to continue to serve a function in association with the legal entity containing the merged operations;
a transferor sometimes needs to be kept technically in legal existence to ensure legacies benefiting it do not fail following a merger.
