The Official Receiver will not try to appeal the High Court judgment, which found in favour of the former directors and chief executive of Kids Company.
Last month the High Court ruled that those in charge of the charity had done nothing wrong and criticised aspects of the Insolvency Service’s case.
The Official Receiver had been appointed to wind up the charity in 2015, following its high-profile collapse. It subsequently decided to bring disqualification proceedings against Kids Company’s former trustees and chief executive.
The case was heard at the end of last year and the judgment was handed down this last month by Justice Falk.
While, the court found parts of Kids Company’s business were “high risk” and recognised that it had cash flow struggles, it ruled that it was not “unsustainable in principle”.
She went on to praise the former trustees, saying in the judgment: “Most charities would, I would think, be delighted to have available to them individuals with the abilities and experience that the trustees in this case possess.”
Falk also criticised the Official Receiver’s case for a “lack of experience” in charity matters.
In February the Insolvency Service said it was considering whether it would appeal the decision. A spokesperson has now confirmed that it is not seeking permission to appeal the judgement.
Other investigations
Kids Company has already been the subject of a parliamentary inquiry. The Public Administration and Constitutional Affairs Committee blamed trustees, ministers and the Charity Commission for an “extraordinary catalogue of failures”.
In response the government committed to greater scrutiny before awarding grants to charities. The Charity Commission opened a statutory inquiry into what happened at the charity in 2015. However, it was unable to conclude its case because the work of the Insolvency Service took precedence.
Last month the Commission said: “As well as the direct impact on the charity, its beneficiaries, staff and supporters, the collapse of Kid’s Company had a wider effect on public confidence in charities and so it is important that lessons are learned for the future. Following the High Court’s finding we can now move to conclude our own inquiry into the charity and we will carefully consider today’s judgment.”
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