Scotland’s charity regulator OSCR has launched a consultation on changes being made to Scottish charity law, including a proposal to extend automatic disqualification rules for trustees.
According to the regulator, the aim of the consultation is to gauge the views of charities and key stakeholders on the changes.
To take part in the consultation, charities and stakeholders need to fill out a short survey on the newly proposed extension of automatic disqualification rules, by 1 October.
The legislation was first laid in Scottish Parliament on 23 February to bring into effect some of the changes contained in the Charities (Regulation and Administration) (Scotland) Act 2023.
The first changes took effect from 1 April, with further measures to be introduced this October; these rules, if implemented, would be introduced in mid-2025.
Expansion of diqualification rules
One of the major changes to be introduced would amend the rule that automatically disqualifies someone from undertaking particular functions within a charity (such as a being a trustee), if they fall under the following categories:
- Have an unspent conviction for an offence involving dishonesty or an offence under the Charities and Trustee Investment (Scotland) Act 2005.
- Are an undischarged bankrupt or have a Protected Trust Deed.
- Have been removed under either Scottish or English law or the courts from being a charity trustee.
- Have been disqualified from being a company director.
Furthermore, the Charities Act 2023 will also extend the range of people that will be able to be disqualified to include those convicted or terrorism or who are on the sexual offenders’ register.
These new rules will also be applicable to staff or volunteers undertaking a senior management function in a charity, not just trustees.
‘Charities must be prepared’ for new rules
Gavin McEwan, a partner at Turcan Connell, said: “The rules disqualifying individuals from serving as charity trustees in certain circumstances are vital to ensuring confidence in a well-run charity sector.
“The expanded range of offences which will lead to disqualification means there may be some people currently serving as charity trustees who will become disqualified immediately on the new provisions taking effect.
“Charities must be prepared to manage the governance impact of such cases.
“The extension of the rules to cover those who carry out senior management functions, both paid and voluntary, brings additional due diligence to charities both in terms of current staff and volunteers, and the checks that will be necessary when taking on new staff and volunteers in senior management roles.
“It is critical that charities are thinking ahead on how to deal practically with this extension of the rules.”
