Explanatory note

Under section 20(1)(vii) of the Charities Act 1960 (as substituted by section 8(2) of the Charities Act 1992), the Charity Commissioners may by order appoint in accordance with section 20A of that Act (as inserted by section 9 of the Charities Act 1992) a receiver and manager in respect of the property and affairs of the charity where, at any time after they have instituted an inquiry under section 6 of that Act with respect to the charity in question, they are satisfied that there is or has been any misconduct or mismanagement in the administration of the charity or 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. Under article 2 of, and Schedule 2 to, the Charities Act 1992 (Commencement No.1 and Transitional Provisions) Order 1992 (S.I. 1992/1900 (C. 64)), the amendments referred to above come into force on 1st November 1992. The relevant provisions extend only to England and Wales.

These Regulations make provision in respect of persons appointed by order of the Charity Commissioners (“the Commissioners”) as receivers and managers (referred to in these Regulations as “appointed persons”—see regulation 1(2)). Regulation 2 authorises the Commissioners to require the appointed person to give security to them for the due discharge of his functions. Regulation 3(1) authorises them to determine the amount of an appointed person’s remuneration which, by virtue of regulation 3(2), is payable out of the income of the relevant charity. Under regulation 3(3) the Commissioners are authorised to disallow any amount of an appointed person’s remuneration where, after giving him notice in accordance with regulation 4(2) and considering any representations made by him, they are satisfied that he has failed to give security as required or satisfactorily to discharge the functions imposed on him by or by virtue of the order by which he was appointed or by regulation 5 (the grounds set out in regulation 4(1)). Under regulation 4(3) the Commissioners may also remove an appointed person for such failures after giving him such notice and considering any representations made by him.

Regulation 5 makes provision for the making of reports by an appointed person to the Commissioners. Such reports must be made within three months of an appointed person’s appointment, within one month of each anniversary of that appointment and within three months of his ceasing to hold office as such and must set out the matters required by paragraphs (2), (3) and (4) of regulation 5, respectively (subject to the exception made by regulation 5(5) in respect of the report otherwise required by regulation 5(4) where an appointed person ceases to hold office within one month of the date by reference to which annual reports are made).