The Charity Commission was right to order a charity to replace its board with independent trustees, the Charity Tribunal has ruled.

But in a decision published last week it said substantial amendments must be made to the scheme governing the Bath Recreation Ground Trust, which administers an area of land which includes the home of Bath Rugby Club.

It said the scheme was "inadequate in addressing the conflict of interest" between several parties in the dispute.

The scheme set out by the Commission includes replacing the local authority, Bath and North East Somerset Council, with a new independent body of trustees. The scheme, which was set out to the Bath Recreation Ground Trust in June 2013, was first appealed by three local residents in July 2013.

The Tribunal said the Commission was right to make the scheme, and that it was "a proportionate use of the Commission’s powers in respect of a charity that has been poorly run for a long period of time".

However the Tribunal made a number of substitutions and additions to the Commission’s scheme. These include the strengthening of governance arrangements at the charity, specifically the make-up of the trustee body. This includes reducing the number of trustees nominated by the local council from two to one.

It said a leisure centre on the land, which is currently run by the council, must be brought within the management of the new trustee body.

It also ruled that the scheme must clearly confirm the charity's objects and the rules governing how the land is run.

And it stated that at least three members of the new trustee board must be residents of the city of Bath.

Bath Recreation Ground has been the centre of a dispute doing back nearly 15 years.

The long-running battle saw the trustees of Bath Recreation Ground, the local authority, put under pressure to decide whether to allow Bath Rugby Club, which rented land from the charity for its grounds, to expand further into the land.

Following the division between locals and concerns about the loss of views and usable land, the trustees were unable to make a decision, which led to the Charity Commission conducting an investigation. It publishing a statutory inquiry report in 2008.

Dissapointment

The ruling means that Councillor David Dixon, chair of the Trust and deputy leader of the council, must step down. A decision which he has said he is disappointed with.

Dixon told the Bath Chronicle: "I am extremely disappointed by the restriction that the Tribunal has at this 11th hour placed on the Trust's ability to seek the best deal possible for the charity. The Tribunal's decision has drastically limited what can be achieved and I do not accept that the final result is in the best interests of the charity."

But he added: "I see no reason that we can not make the project with Bath Rugby work, this is integral in the future success of furthering our charitable objectives.”

A spokesperson from the Trust said: “The trustees will now look closely at the legal options which include appeal and also consider whether there are other options to achieve the same objectives.”

Adding: “The Trust will want to work closely with the Council and Bath Rugby to obtain information to help it develop plans for the future.  It will separately decide if any further legal action is in the interests of the Trust and its beneficiaries.”

Kenneth Dibble, chief legal adviser at the Charity Commission, said: “We are pleased that the Tribunal found favour with our approach in making this scheme and we are optimistic that the trustees will now be able to move forward and enhance the use of this valuable asset for the benefit of the community.

“The Commission acknowledges the important role played in these proceedings in the Tribunal by those who brought the appeal."