Automated Summary
Key Facts
The Sikh Channel Community Broadcasting Company Limited (Charity) appealed against the Charity Commission's 2020 decision to appoint an interim manager during a statutory inquiry. The Tribunal allowed the appeal, quashing the interim manager appointment. Key findings included: (1) The Charity Commission satisfied the first criteria (misconduct/mismanagement by former trustees) but failed to meet the second (necessity to protect charity property or ensure proper application). (2) Current trustees demonstrated genuine intent to act in the charity's interest without being influenced by a former trustee. (3) The Tribunal found the Charity Commission could have used its power to appoint new trustees from the Sikh community instead of interim managers.
Issues
The Tribunal considered whether the Commission's appointment of an interim manager under s.76(3)(g) was necessary or desirable to protect the charity's property and ensure proper application for its purposes, finding that while mismanagement existed, the second limb of the statutory test was not met.
Holdings
- The Tribunal concluded that they themselves would not exercise their discretion to appoint an Interim Manager, based on the evidence and statutory test considerations.
- The appeal is allowed. The decision to appoint an Interim Manager is quashed.
- The Tribunal found that the second limb of s76(1) is not met, as it is not necessary or desirable to act for protecting the charity's property or securing its proper application.
Remedies
The Tribunal allowed the appeal and quashed the decision to appoint an Interim Manager.
Legal Principles
The Tribunal applied the balance of probabilities standard in assessing whether the Charity Commission's appointment of an Interim Manager met the statutory criteria under section 76 of the Charities Act 2011.
Cited Statute
Charities Act 2011
Judge Name
- Helen Carter-Shaw
- Stuart Reynolds
- Rebecca Worth
Passage Text
- 34. For the reasons explained above, we conclude that we ourselves would not exercise our discretion to appoint an Interim Manager.
- 32. We have considered the statutory test and find that the provisions of s. 79(1) are met (1) a Statutory Inquiry has been commenced, (2) this is a time after the Charity Commission has instituted an inquiry under section 46 with respect to the Charity and (3) there has been mismanagement of the Charity.
- 33. We do not find that the second limb of s76(1) is met, namely that that it is necessary or desirable to act for the purpose of protecting the property of the charity, or securing a proper application for the purposes of the charity of that property or of property coming to the charity.