
PROPOSED AMENDMENT TO S. 37(2) OF THE CHARITIES ACT 1993
At present section 37(2) requires every disposition of charity land to contain a certificate by the charity trustees. This creates no difficulty where the charity is unincorporated and the trustees are individuals. Where, however, the charity is a corporate body and is executing the disposition in its corporate name, the charity trustees should be made parties to the transfer, lease, etc in addition to the charity itself, so that they can give the certificate. Similarly, where the trustee is a corporate body such as a company or a body of trustees incorporated under s 50 of the Charities Act 1993, it is arguable that the charity trustees of the charity are the directors or members of the trustee body, not the trustee body itself, and therefore that those individuals should be parties to the disposition. In practice the requirements are often not strictly applied, but this could cause difficulty for the purchaser at a later date. The amendment would give recognition to the de facto position and reduce the complexity and cost of transactions in charity land by enabling the charity or the charity’s corporate trustee to give the relevant certificate. Since the charity or a charity’s corporate trustee body can only operate through its directors members the substantial effect of the existing provision will not be altered.
It is suggested that the amendment should be as follows:
"Page 114, line 15, after ('supplementary provisions relating to dispositions), insert 'in subsection (2), after the words 'section 36 applies,' insert 'the charity (if a corporate body), the trustee of the charity (if the trustee is a corporate body) or' and in'".
11 OLD SQUARE
LINCOLN’S INN 10 February 2005
