By Jennifer Hotston of Charles Russell LLP
Charity trustees have a duty to act in the best interests of
their charity. How this is achieved is usually left to the
trustees' discretion. However, if trustees wish to sell, lease
or mortgage property, the Charities Act 1993 (the Act) sets out
clear procedures that must be followed to ensure that the
transaction is made on the best terms for the charity.
Requirements of the Charities Act 1993
Pursuant to the Act, all registered charities and excepted
charities (but not exempt charities) must comply with specific
requirements when disposing of or mortgaging property, unless they
have obtained an Order of the Court or the Charity Commission.
