The following Restructuring & Insolvency guidance note Produced in partnership with Rebecca Walker of Irwin Mitchell provides comprehensive and up to date legal information covering:
In Charity Commission for England and Wales v Thrift Urban Housing Ltd, the Charity Commission was successful in its petition to wind up a charity under the Insolvency Act 1986 (IA 1986) on the ground that it was just and equitable to do so. This was the first time that the Charity Commission has exercised its power under section 113 of the Charities Act 2011 (CA 2011) to present a winding-up petition against a charity where there has been misconduct or mismanagement in its administration or there is a need to protect its property. The court’s approach in deciding the petition reflected the approach taken to public interest winding-up petitions presented by the Secretary of State under IA 1986, s 124A.
CA 2011, s 1 defines a charity as an institution that is:
established for charitable purposes only; and
falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities
It is important to note that a charity is a status conferred on an institution because of the activities it carries out. A charity is not a type of legal structure.
The insolvency procedures available to a charity very much depend on how the charity is constituted. The purpose of this note is to set out the insolvency procedures
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234