C20

Prospective affecting provision: section inserted by Charities (Amendment) Act 2024 (21/2024), s. 22, not commenced as of date of revision.

F50[54B.— (1) Without prejudice to the duties of trustees generally and to the requirements of this Act, the duties of a charity trustee of a charitable organisation shall include the following:

(a) to act in good faith in what the charity trustee considers to be the best interests of the charitable organisation;

(b) to act honestly and responsibly in the advancement of the charitable purpose of the charitable organisation;

(c) to avoid any conflict between the charity trustee’s duties to the charitable organisation and the charity trustee’s other (including personal) interests;

(d) to exercise the care, skill and diligence which would be exercised in the same circumstances by a reasonable person having both—

(i) the knowledge and experience that may reasonably be expected of a person in the same position as the charity trustee, and

(ii) the knowledge and experience which the charity trustee has.

(2) Where a charitable organisation is on notice that a charity trustee of the charitable organisation has committed a breach of his or her duty under subsection (1), the charitable organisation shall endeavour to remedy the consequences of that breach as soon as practicable after becoming aware of the breach.

(3) A breach of duty by a charitable trustee under subsection (1) shall not of itself affect—

(a) the validity of any contract or other transaction, or

(b) the enforceability, other than by the charity trustee in breach of that duty, of any contract or other transaction by any person,

but nothing in this subsection affects the principles of liability of a third party where he or she has been an accessory to a breach of duty or has knowingly received a benefit from that breach.

(4) In so far as a duty of a charity trustee specified in subsection (1) corresponds to an equitable principle or common law duty of a trustee, regard shall be had to the equitable principle or common law duty in interpreting that duty and in the application of subsection (1).

(5) Where the Authority is of the opinion that there has been a contravention of subsection (1) or (2), the Authority may make an application to the High Court citing paragraph (b) or (e) of section 74(1).]