| Commentary

7.4 Charitable companies

| Commentary

7.4 Charitable companies

Neither of the protective provisions contained in the Companies Act 2006 Section 39 and Section 401 applies to companies that are charities except in favour of a person who:

  1. 7.4.1

        does not know at the time the act is done that the company is a charity; or

  2. 7.4.2

        gives full consideration in money or money’s worth in relation to the act in question and does not know (as the case may be) that the act is not permitted by the company’s constitution or that the act is beyond the powers of the directors2.

Subsequent

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