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What every trustee needs to know (beginner/refresher session) Bethan WalshSolicitor, Charity Law & Social Enterprise
15th March 2016
IntroductionKey themes•Trustee role and duties•Good Governance•Trustees and staff•Trustee liability
Trustee DutiesBasics•Compliance•Prudence•Care
“The buck stops here”, “Fiduciary Responsibility”Good governance
Trustee Duties - Compliance• Governing Document
– The objects– The powers– Administrative/Appointment provisions
Trustee Duties - Compliance• The law
– Charity law– Company Law– Tax law– Other relevant laws
Trustee Duties - PrudenceSensible Trustees will:•Use assets / funds properly•Operate effective management and financial controls•Keep the charity solvent•Undertake risk assessment•Delegate appropriately•Address special matters – land; borrowing; investments; reserves
Trustee Duties – Duty of Care• Generally
– Reasonable care and skill– Take professional advice
• Statutory duty of care– Companies Act 2006– Charities Act 2011– Trustee Act 2000• Issues– Trustee meetings and acting collectively– Conflicts of interest and loyalty
Trustees & Staff
Trustees StaffStrategy RecommendPolicy UndertakeSupervision Report
Decide and delegate Carry out delegations
Key issues to remember:• Know your governing document• Know and understand your objects• Ensure activities further objects• Ensure public benefit• Avoid/manage conflicts of interest• Read the papers• If in doubt, take advice
Trustee Liability• If trustees have acted prudently and in
accordance with the law and the governing document then:– generally all liability to be met from charity’s
resourcesBut if not :
• Possible personal liability• Collective responsibility
Taking Governance to The Next LevelRead•CC3 – The Essential Trustee•CC10 – Hallmarks Of An Effective Charityand•Good Governance – A Code for The Voluntary & Community Sector•www.governancecode.org
Thank You
