Automated Summary
Key Facts
The Island Health Charitable Trust was formed in 1992 and incorporated as a charity in 2008. Suzanne Goodband was appointed as a trustee and chair in 2009. The charity entered into consultancy agreements with Goodband's company, Suzanne Goodband Interim Solutions Limited (SGIS), starting in March 2015, resulting in significant payments to her. The Charity Commission initiated a compliance case in December 2016, which was closed in March 2017 but reopened in August 2017. Goodband resigned as a trustee in October 2018. A 2021 settlement required her to repay £165,000 to the charity. The Commission's order, issued in December 2022, disqualified her from being a charity trustee for 12 years, later reduced to seven years by the tribunal in January 2024.
Issues
- Whether Ms Goodband (a) was responsible for the misconduct or mismanagement, (b) knew of it and failed to act, or (c) contributed to or facilitated it.
- Whether during the period Ms Goodband was a trustee, there was misconduct or mismanagement in the administration of the Charity.
- Whether Ms Goodband is unfit to be a charity trustee or trustee for a charity, either generally or in relation to specific charities.
- Whether the 12-year disqualification period imposed by the Commission is disproportionate and should be adjusted.
- Whether making a disqualification order is desirable in the public interest to protect trust and confidence in charities.
- Whether the disqualification should apply in relation to all charities or specified charities/classes of charity.
- Whether Ms Goodband was a trustee, charity trustee, officer, agent, or employee of the Charity at all material times.
Holdings
- The tribunal determines the disqualification period of seven years is proportionate, considering Ms Goodband's awareness of her responsibilities post-proceedings and the need to protect public trust in charities after significant reputational damage caused by excessive expenditures and conflicts of interest.
- The tribunal finds Ms Goodband unfit to be a charity trustee or trustee for a charity in relation to all charities due to her reckless disregard for managing conflicts of interest and aligning strategy with the Charity's Objects, despite concluding she does not lack integrity.
- The appeal is upheld in part. The tribunal agrees with the Commission's decision to make a disqualification order against Ms Goodband in respect of charities generally but reduces the disqualification period to seven years from the date of this decision, deeming it proportionate.
Remedies
The tribunal upheld the disqualification order against Ms Goodband but reduced the period to seven years, effective from 19 January 2024, to protect public trust in charities.
Legal Principles
- The standard of proof was determined to be on the balance of probabilities throughout the tribunal's assessment of facts and legal arguments, including evaluations of misconduct, mismanagement, and fitness to act as a trustee.
- The tribunal found that Ms Goodband breached her fiduciary duty as a charity trustee by failing to manage conflicts of interest arising from her consultancy role and by acting recklessly in the administration of the charity. This included misusing charitable resources and not acting in the best interests of the charity.
- The tribunal applied the burden of proof on the Charity Commission to demonstrate statutory criteria for disqualification under section 181A of the Charities Act 2011. Once met, Ms Goodband bore the burden to show the disqualification should not be made or should be modified.
Precedent Name
Mountstar (PTC) Limited v Charity Commission for England and Wales
Cited Statute
Charities Act 2011
Judge Name
- Stuart Reynolds
- Peter Hinchliffe
- Helen Carter-Shaw
Passage Text
- The appeal is upheld in part. The tribunal agrees with the Commission's decisions to make a disqualification order against Ms Goodband in respect of charities generally. However, we consider that the proportionate disqualification period in this case is seven years starting from the date of this decision.
- The tribunal concludes that a disqualification period of seven years... would be proportionate to the breaches and failures for which Ms Goodband is responsible and would be sufficient to protect charities.
- The tribunal finds that Ms Goodband acted in a reckless manner... She was so blinded by her belief in her own judgement and competence that she failed to see the need to address any issue that would have prevented her from proceeding in the manner that she had convinced herself was appropriate and necessary.