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July 2007 |
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This material will shortly be available at our web-site (http://russellcookesolicitors.createsend.com/t/1/l/tkklr/l/www.russell-cooke.co.uk) together with an archive of past updates.
TRUSTEE INDEMNITY INSURANCE – NO PANACEA
The Charities Act 2006 now provides that, unless expressly prevented, charities can purchase trustee indemnity insurance without having to go to the Commission to amend their governing documents to allow this. However, such policies are no cure all and need to be very carefully examined. One problem frequently found is that the policy only covers claims by third parties against the director/trustee but if the organisation goes into liquidation, will a liquidator’s claim for a financial contribution from a trustee, count as a claim by a third party? There is dispute as to whether a liquidator is a third party or an officer of the company, but some case law suggests that he is an officer of the company. If that is the case, the directors/trustees would find that the policy did not cover them against a claim from the liquidator. It is important to ensure that any policy that is put in place does not exclude liability in those circumstances. The Charities Act 2006, s39; Re X [1907]; Re Home Treat [1991]. For further information, please contact:
STATUTORY HOLIDAY ENTITLEMENT
Statutory holiday entitlement under the Working Time Regulations will increase from 20 days per annum to 24 on 1 October 2007 and then 28 days on 1 April 2009. Employers will be able to pay workers in lieu of the extra holiday entitlement until 1 April 2009 but payments in lieu cannot be made for the existing 20-day entitlement. Employers who already give 28 days holiday will be excluded from the new rules provided they:-
Organisations need to notify employees in writing of the increase in their holiday entitlement within one month of the change to comply with the Employment Rights Act 1996. If employment contracts explicitly provide for Bank Holidays in addition to statutory entitlement employers may wish to consult with staff to agree a variation as this will be a very costly level of entitlement. For further information, please contact:
ANNUAL RETURNS: TOUGHER MEASURES
The Charity Commission has decided that charities failing to submit annual returns in good time will be removed from the register. Some 17,000 charities are more than a year late in submitting their documents. These new measures are intended to address this problem and reassure the public that the online register is accurate and up to date. From November, if a charity has not filed returns to the Commission for more than a year and ten months, and fails to respond to attempts to contact if over the following year, it will be removed from the register. For further information, please contact:
ANNOUNCEMENT:
Please note that Russell-Cooke converted to a limited liability partnership (“LLP”) on 1 July 2007. The change does not affect the service provided to clients who will continue to work with the same lawyers as at present. If you have any queries about the conversion please contact the lawyer you usually deal with. Further details are available at:
OTHER EVENTS:For a full list of forthcoming events see the Charity Team’s
web-site at: The Charity Team Tel: 020 8789 9111
This material does not give a full statement of the law. It is intended for guidance only, and is not a substitute for professional advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting can be accepted by Russell-Cooke. Copyright: Russell-Cooke, July
2007 An archive of past updates can be found at http://russellcookesolicitors.createsend.com/t/1/l/tkklr/l/www.russell-cooke.co.uk/serv_charities_updates.htm If you would like to reproduce some or all of our updates in your own publication, contact Shivaji Shiva on 020 8394 6486 or e-mail on Shivaji.Shiva@russell-cooke.co.uk
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