1 / 17

3.6 version 2

Scottish Charitable Incorporated Organisations (SCIOs) A guide to the Scottish Government Consultation Analysis Report 2010 & Draft Regulations (October 2010) for advisors of smaller charities. 3.6 version 2. Background. 2005 Act Background Working Group

Download Presentation

3.6 version 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Scottish Charitable Incorporated Organisations (SCIOs)A guide to theScottish Government Consultation Analysis Report 2010 & Draft Regulations (October 2010) for advisors of smaller charities 3.6 version 2

  2. Background • 2005 Act • Background • Working Group “To advise Scottish Ministers on how best to implement a regime for Scottish Charitable Incorporated Organisations (SCIOs), that is cost-effective, as straightforward as possible and tailored to the needs of Scottish charities” • Draft regulations & discussion 2

  3. Target Market • Working Group view SCIO may be most appropriate for charities with income £25k - £100k • No intention to restrict SCIO adoption Government response: …option of applying to become a SCIO will be open to all Scottish charities/potential charities 3

  4. Model Options • 3 Options presented • Vast majority preferred the Working Group’s Option 1 “A straightforward yet robust incorporation vehicle for Scottish charities” Government response: “Draft regulatory framework… that seeks to maintain accountability and organisational rigour, strengthening governance and building capacity, without encumbering SCIOs with excessive regulatory detail”. 4

  5. Applications, conversions and amalgamations • The regulations are silent on these aspects of administration of a SCIO • Administrative detail left to OSCR • Details to be included in the guidance • The Act describes some principles already 5

  6. SCIO Constitutions • The Act states that a constitution should include: • Its names and purposes • Members: eligibility for membership and how a person becomes a member • Charity trustees: A SCIO must appoint 3 or more persons who are to be charged with the general control of the SCIO’s administration, and about any eligibility for becoming a charity trustee 6

  7. SCIO Constitutions Constitutional elements set out in draft Regulation 3: • Powers • Structure • Board Composition • Office bearers • Procedural rules • Withdrawal and removal of members and charity trustees • Maximum number of charity trustees • Remuneration • Conflict of interest • Wind up and dissolution – disposal of charitable assets 7

  8. SCIO Registers • Register of charity trustees • Section 23 availability to the public • Retention for five years • Guidance to be issued • Principal contact/Registered address • Register of members • Register to be available only to other members 8

  9. Membership • Membership is to be non-transferable • Meetings of members at least annually 9

  10. Name and Status • A SCIO must state that is a SCIO • References in documents – draft Regulation 10 10

  11. Accounting framework • The Regulations are silent on the subject of an accounting framework • Intention that SCIOs subject to Sections 44 to 46 of the Charities and Trustee Investment (Scotland) Act 2005 • The Charities Accounts (Scotland) Regulations 2006 (and amendments) 11

  12. Dissolution Section 18 of the Act disapplied to SCIOs: Formal dissolution procedures must be part of the price of limited liability 12

  13. Dissolution of solvent SCIOs • Before application for dissolution a SCIO must pass a resolution stating: • Subject to OSCR‘s consent it winds up its affairs • Outstanding debts and liabilities must be satisfied • Surplus assets will be transferred • The date it proposes to dissolve • And it must have been passed not more than 15 days before making the application. 13

  14. Dissolution of solvent SCIOs • An application for dissolution of a SCIO must include: • Constitution and register of charity trustees • Other documents which will be developed as schedules to the regulations: • A declaration of solvency • Notice period for dissolution • Pro-forma balance sheets 14

  15. Dissolution of insolvent SCIOs • The principle proposed in the regulations is that a SCIO will be subject to: • Sequestration under the Bankruptcy (Scotland) Act 1985 • New bespoke process as an interim measure to allow modification in the future to include: • Applications for sequestration by the SCIO itself • Applications for sequestration by a creditor 15

  16. Dissolution of insolvent SCIOs An application for dissolution of an insolvent SCIO must include: • Constitution and register of charity trustees • Other documents which will be developed as schedules to the regulations: • A declaration of insolvency • Notice of application for dissolution • Pro-forma balance sheets 16

  17. Dissolution of insolvent SCIOs Process after receipt of compliant application: • OSCR refers application to Accountant in Bankruptcy (AiB) • AiB satisfies itself that the SCIO owes at least £1500 and therefore will award sequestration of the estate of the SCIO • Fee of £100 • Lengthy process of administration by an appointed trustee • Any surplus assets transferred to another charity • OSCR notified and SCIO removed from the Register 16

More Related