Part 9Charity trustees, trustees and auditors etc.

Remuneration of charity trustees and trustees etc.

186Disqualification of charity trustee or trustee receiving remuneration under s.185

1

This section applies to any charity trustee or trustee for a charity—

a

who is or would be entitled to remuneration under an agreement or proposed agreement within Condition A, or

b

who is connected with a person who is or would be so entitled.

2

The charity trustee or trustee for a charity is disqualified from acting as such in relation to any decision or other matter connected with the agreement.

3

But if an act is done by a person who is disqualified from doing it by virtue of subsection (2), the act is not invalid merely because of that disqualification.

4

If the Commission is satisfied—

a

that a person (“P”) has done any act which P was disqualified from doing by virtue of subsection (2), and

b

that P or a person connected with P has received or is to receive from the charity any remuneration under the agreement in question,

it may make an order under subsection (5) or (6) (as appropriate).

5

An order under this subsection is one requiring P—

a

to reimburse to the charity the whole or part of the remuneration received as mentioned in subsection (4)(b);

b

to the extent that the remuneration consists of a benefit in kind, to reimburse to the charity the whole or part of the monetary value (as determined by the Commission) of the benefit in kind.

6

An order under this subsection is one directing that P or (as the case may be) the connected person is not to be paid the whole or part of the remuneration mentioned in subsection (4)(b).

7

If the Commission makes an order under subsection (5) or (6), P or (as the case may be) the connected person accordingly ceases to have any entitlement under the agreement to so much of the remuneration (or its monetary value) as the order requires P to reimburse to the charity or (as the case may be) as it directs is not to be paid to P.

8

Sections 187 and 188 (interpretation) apply for the purposes of this section.