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Appointing body and trustees for new charity

Governance

Robert Devine Chairman at Asian Film Foundation Posted 1 year ago

HI
I am setting up a new charity, and just filing CIO docs
we have an initial three trustees, who will be written into the document
my plan is to fill out the board over the course of the next year, the document mentions an "appointing body" - can that be a company or even a foreign company? (my pref would be to have said appointing body to nominate them and then have the exiting trustees approve the nomination)
 what are the rules on appointing bodies
thanks!
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Hirsch Sharma

Hirsch Sharma Staff PANEL

CEO at Boardroom Consultants 1 year ago

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Yes, an appointing body can be a company, including a foreign company. The Charity Commission's guidance on appointing bodies states that:
The appointing body can be any body or person, including a company, a trust, or an individual. However, the appointing body must be independent of the charity and its trustees.
The appointing body must not be controlled by the charity or its trustees. This means that the appointing body cannot be:
  • A trustee of the charity
  • A member of the charity's governing body
  • An employee of the charity
  • A person who is related to a trustee or member of the governing body
The appointing body must also be able to act independently of the charity and its trustees. This means that the appointing body cannot be influenced by the charity or its trustees in its decisions about who to appoint as trustees.
If you want to have a company or foreign company as the appointing body, you will need to make sure that it meets the above requirements. You will also need to make sure that the company or foreign company is willing to act in an independent manner.
Here are some additional things to keep in mind when appointing an appointing body:
  • The appointing body should have a clear and transparent process for appointing trustees.
  • The appointing body should have a diverse range of people on it, so that the trustees who are appointed reflect the diversity of the charity's beneficiaries.
  • The appointing body should keep records of its decisions about who to appoint as trustees.
I hope this helps!

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Robert Devine

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Chairman at Asian Film Foundation 1 year ago

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Hirsch Sharma  
Thank you Hirsch, very useful reply
So as I understand it, the other option would just be to have the Board of Trustees responsible for appointing new trustees ... that would be simpler
best
Robert Devine

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Robert Devine   
That is what my charity does ie have the board to appoint trustees.
 
Warm regards

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Marcus Ward

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Partner at Peach Consultancy 1 year ago

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Hi Robert, this depends on whether the CIO is a Foundation model (members are the trustees and vice versa) or an Association Model with a separate members body and trustee appointments are voted on annually by the full membership at an AGM.
So the appointing body will refer to either one of these.
Its a very political argument with arguments both ways, but personally i prefer the Foundation Model, which lets the trustees get on with it, including appointing new trustees.
You can have corporate members but the CC advice (CC14a) is not to mix them with individual members.
https://www.gov.uk/government/publications/charitable-incorporated-organisations/practice-guide-14a-charitable-incorporated-organisations#:~:text=Corporate%20trustees%20are%20legally%20permissible,corporate%20and%20individual%20trustees%20(see
Not sure why you would want corporate members tho?
Best
Marcus

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