Debbie Holden
Leadership & Governance
Do trustees need to be consulted before a charity can be closed? (Anonymous post 🤫)
Ocean King Staff Senior Community Executive at CharityConnect Posted 8 months ago
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This question is from a member of our community that wishes to remain anonymous:
I work for a charity that operates as a subsidiary within a wider group structure. There is one other charity within the group, and both are overseen by the same parent organisation, which is classified as an exempt charity.
I have recently been informed by the director—who is employed by the parent organisation and holds responsibility for both subsidiary charities—that a decision has been made to close the other charity. However, they told me that this decision has not yet been communicated to the trustees of that charity.
I would like to understand whether such an approach is permissible under charity governance and regulatory standards. Specifically, is it acceptable for a director to initiate closure proceedings without first informing or consulting the charity’s trustees?
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