Alastair Keatinge

Proposals by the Scottish government to protect charitable assets at risk through misconduct by a charity's governing body have been slammed by the Institute of Chartered Accountants of Scotland, which says the move could put beneficiaries and creditors at risk.

A well-known Scottish charity fell foul of the constitution when governance arrangements were overlooked. Alastair Keatinge surveys the damage.

The story of a charity founded in Victorian times with a terrible reputation in the local community who felt its practices were still embedded in the last century.

Despite growing numbers of charities borrowing successfully, many trustees continue to be reluctant to do so because of the risks they associate with it.