Share

Lloyds appeals against £3.5m Foundation funding ruling

Mary Craig, CEO, Lloyds TSB Foundation for Scotland
News

Lloyds appeals against £3.5m Foundation funding ruling

Finance | Jonathan Last | 14 Feb 2012

The Lloyds Banking Group has confirmed that it is appealing to London’s Supreme Court against the judgment ordering it to pay £3.5m to the Lloyds TSB Foundation for Scotland.

The Foundation originally lost a court battle over the same amount last year – after it received £38,920 from its main benefactor for 2010, significantly less than it believed it was owed from the Banking Group – but that decision was later rescinded on appeal. Now the Group is fighting against that ruling.

Under the terms of a covenant, the Foundation is entitled to a share of one per cent of Lloyds Banking Group's pre-tax profits on an annual basis. The Group’s argument for paying out the lesser sum was that due to its merger with Halifax Bank of Scotland its accounts included £11.2bn of ineligible ‘negative goodwill’*, leaving no actual pre-tax profit for the Foundation to take a percentage of.

Lloyds TSB Foundation for Scotland has called the move “ill-judged, oppressive and unnecessary”, and has urged its benefactor to rethink the decision.

Speaking after hearing the news, Mary Craig OBE, chief executive of the Foundation, said: “To have had a judgement in favour of our position with regard to the monies due to the Foundation from Lloyds Banking Group only to have them appeal at this late stage is extremely disappointing. Charities have had their hopes raised that we would be back in funds this year and this decision puts paid to that.

“Questions must now be asked as to why a major institution of its size, owned in part by the taxpayer, feels the need to pursue a charitable organisation in this way. Three judges ruled unequivocally in favour of the Foundation at the end of 2011. Despite that, today we now find ourselves back in limbo as Lloyds Banking Group seeks to tie us up in court action for at least another year, with additional legal costs and more time wasting.

“But worse still, this shameful turn of events means that monies due to us will be held back for a third year until this further appeal is heard and decided – and that is money we should be awarding to Scotland’s hard-pressed charities, now and in the future.”

The Supreme Court has yet to announce when it will hear this latest appeal case.

*Negative goodwill occurs when the price paid for an acquisition is less than the fair value of its net assets.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Big Lottery Fund reviews process for soliciting bids

22 Aug 2014

The Big Lottery Fund is reviewing the practice of soliciting bids for projects, such as its £1m grant...

Legacy income sees fastest quarter of growth

22 Aug 2014

Legacy income rose by 9.7 per cent in the 12 months to 30 June 2014 compared with the same period last...

NTT hits back at Dispatches investigation

22 Aug 2014

Telephone fundraising agency NTT has hit back against the Channel 4 investigation on telephone fundraising...

Jersey charity pilots free healthcare programme for the poor

21 Aug 2014

A Jersey charity launched a free and subsidised healthcare programme yesterday for people on low incomes....

Awema charity boss claims he paid back £100,000 and denies dishonesty

21 Aug 2014

A former charity boss accused of fraud said he paid back more than £100,000, and denies any wrongdoing,...

Big Society Network parent charity applies to wind itself up

20 Aug 2014

Society Network Foundation, the charitable parent of Big Society Network, has applied to Companies House...

Macmillan: We did not hijack #icebucketchallenge

21 Aug 2014

Macmillan has hit back against accusations on social media that it has hijacked #icebucketchallenge, saying...

Smart wristbands aim to increase charity giving

20 Aug 2014

A new wristband that will enable people to make faster donations with just a tap of a smartphone, is...

National Trust to develop new website in £2m digital upgrade

15 Aug 2014

The National Trust has budgeted £2m to update its digital services, including a new website and mobile...

Join the discussion

 Twitter button

@CSFinance