ADVANCING LOCAL VOLUNTARY ACTION

Ashton House

1a Gatefield Street

Crewe

Cheshire

CW1 2JP

Tel/Fax 01270 211545

Registered Charity No. 506632

Voluntary organisations do not fit into a single legal form and the nature of the organisation has a bearing on the responsibilities and liabilities of board members.

 

4.1.  Charities

In which members of the board of registered, excepted and exempt charities will also be trustees of the charity and the former two categories are subject to regulation by the Charity Commission.

4.2.  Companies limited by guarantee

In which members of the board will also be directors of the company and subject to Companies Act requirements.

 

4.3.  Housing associations

In which members of the board are likely to be the management committee of an Industrial and Provident Society regulated by the Housing Corporation and the Registrar of Friendly Societies.

 

4.4.  Trading subsidiaries of charities

In which members of the board might, in addition to Companies Act requirements, be subject to controls exercised by the parent charity.

 

4.5.  Unincorporated societies and associations not registered as charities

In which conduct is largely self-regulated but subject to the common law.

 

4.6.  Local branches of national or major charities

In which members of the board are akin to the boards of wholly owned subsidiary undertakings of commercial companies.

 

4.7.  Legally separate bodies which are affiliated to major charities

In which members of the board have a degree of autonomy determined largely by the relationship with the major charity and the status of the separate body.

It is not uncommon for a single voluntary organisation to comprise several of these legal forms. Thus many registered charities are also limited liability companies and might also have a trading subsidiary. Many housing associations are industrial and provident societies but also include a registered charity and a limited liability company.

 

If a voluntary organisation decides to have a local authority representative on its board (by anyone of the routes set out in 3 above) it is good practice to inform the local authority of the precise nature of that voluntary organisation's legal form. This will be done by providing copies of the Constitution, Memorandum and Articles or Association and any other governing instruments which are relevant to the voluntary organisation on whose board the member or officer is to serve. The local authority has a reciprocal duty to satisfy itself that it has received and comprehended the relevant information about the voluntary organisation, considered the issue of indemnity and communicated this to the individual member or officer concerned.

DIFFERENT FORMS OF VOLUNTARY ORGANISATIONS