Q&As

A charitable trust is looking to dissolve. The trust will spend all of its funds accordingly. What is the practical process for winding up a trust and, more specifically, what resolutions must be passed at the final meeting(s) of the board of trustees?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 13 January 2021
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There are a number of reasons why a charity or charitable trust may need to be closed. These may include the original purpose ceasing to exist; the loss of funding; the merger with another charitable institution, or other reasons. However, trustees of a charitable trust do not have automatic powers to wind up the trust, unlike, for example, directors of a company. It is necessary firstly to consider the governing document—the underlying trust deed. This may contain provisions relating to the powers of trustees to dissolve the trust as well as in respect of the application of any surplus funds. The trust deed may set out the obligation of the trustees to call a meeting of members and obtain authorisation, or it may set out the basis

Chris Bryden
Chris Bryden

Barrister, 4 King’s Bench Walk

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Key definition:
Funds definition
What does Funds mean?

A collection of assets managed in accordance with an objective for the mutual benefit of all the investors. The investors' share in a unit-linked life or pensions fund is represented by the number of units within the fund that they have been allocated by the life company.

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