The Charity Commission has confirmed an ongoing compliance case at an environmental charity, whose trustees it recently warned against publicly opposing a parliamentary bill that would change its governance.
In a letter addressed to the trustees of the Malvern Hills Trust, which manages the hill range of the same name in Worcestershire, the regulator wrote last month that “the trustees’ inability to reach a consensus when responding on this important matter” is of regulatory concern.
The private Malvern Hills bill is promoted by the charity itself but has nonetheless led to some trustees voicing public opposition to it, which the regulator said “raises further regulatory concerns”.
The commission has confirmed that it has an ongoing compliance case open into the charity.
A commission spokesperson said: “We continue to engage with the trustees of Malvern Hills Conservators on the governance of their charity, and have reminded the board they must always put first the best interests of the charity which was set up to preserve the natural landscape for the benefit of the public.”
After the bill’s first reading in the House of Lords last January, five petitions from trustees of the Malvern Hills Trust were allowed, according to a select committee report.
The bill, which proposes several governance changes including more than halving the charity’s trustees to 12, is now awaiting further debate on whether it can continue its passage through parliament after Baroness Coffey objected to a revival motion in June.
Trustees told to act collectively in charity’s interest
The Malvern Hills Trust, registered as Malvern Hills Conservators with the commission, was created in 1884 through an act of parliament.
The commission granted authority for the charity’s trustees to fund the private bill, which is the only legal mechanism the charity has for amending its governing acts.
In its letter, the regulator said that while it appreciated that not all trustees agreed with the bill, it must nevertheless be supported as the board had previously collectively “determined the bill to be in the charity’s best interests.”
As a result, the commission has now advised trustees not to publicly campaign or petition against the bill and expressed particular concern about the trust’s internal disagreement, lack of consensus and the reputational risk posed to the charity due to such disagreements.
It wrote: “We recognise that having a diverse range of views and opinions on a board allows for healthy debate and supports effective decision-making.
“However, there is a difference between voicing dissenting views within a board meeting and publicly disagreeing with the board’s agreed approach.
“Once the board has made a decision, all trustees must comply with it, including any who disagree, alternatively they could resign.”
Chair welcomes commission guidance
The trust’s chair, John Michael, welcomed the regulator’s guidance in a statement on the charity’s website.
Michael said: “I want to be clear that trustees are entitled to hold and express different views around the Malvern Hills bill. This, however, goes deeper into the fundamentals of being a charity trustee.
“The trust sought independent regulatory advice on this difficult and unusual issue. It is important for all of us to act consistently with that regulatory guidance.
“We have published the full advice on our website, and I hope that all trustees will consider their position carefully.
“We are a charity, not a council, and we must all take collective responsibility for the decisions that have been made in the best interests of the Malvern Hills.”
Michael added that the trust is currently contacting people who petitioned against the bill to discuss their concerns.
Parliament returned yesterday after summer recess, with the parliamentary bill process set to resume shortly.
