The Charity Bank Limited: Charity Commission decision 2013 - summary
Published 31 May 2013
Applies to England and Wales
© Crown copyright 2013
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Having considered the submissions put to it by The Charity Bank Limited (“the Bank”), the Charity Commission (“the Commission”) noted that the Bank was required to make certain changes to its articles in order for it to continue to operate as a bank and retain its permission to accept deposits under the Financial Services and Markets Act 2000. The Commission was of the view that, in so far as these changes related to the payment of dividends and the distribution of capital on a winding up, they were not compatible with the Bank being a charity. If the Bank could not operate as a bank, a very useful resource would be lost to the charitable sector.
Accordingly, in the exceptional circumstances of this case and because it was satisfied that there were sufficient safeguards to ensure that the charitable assets forming part of the undertaking of the Bank and used to forward the work of the Bank would be retained by the charitable sector, the Commission was prepared to permit the Bank to change its articles even though this would have the effect of it ceasing to be a charity.The Bank adopted the proposed amendments subject to the consent of the Commission being obtained. Accordingly, the amendments took effect as soon as the Commission gave its prior written consent.
Consent was given by the Commission under section 198 of the Charities Act 2011 on 31 May 2013 to the proposed amendments to the articles of the Bank set out in the Schedule shown in the full document in so far as they required the consent of the Commission.