Regulator appoints interim managers to community charity over governance concerns

14 Sep 2015 News

The Charity Commission has opened a statutory inquiry into a community charity and appointed interim managers to run it in place of trustees after hearing concerns that the board was not properly elected and that governance was poor.

Enfield Island Village Trust

The Charity Commission has opened a statutory inquiry into a community charity and appointed interim managers to run it in place of trustees after hearing concerns that the board was not properly elected and that governance was poor.

The Enfield Island Village Trust specialises in maintaining a community centre and improving public amenities in Enfield. 

An operational compliance case was opened by the regulator in February 2014. It revealed concerns that the charity's trustees were not validly elected and that “unmanaged conflicts of interest” may have played a part in the appointment of a supplier providing management services to the village.

Further concerns were raised about potential risks to charity funds and that “certain decisions taken” involving charitable funds, may not have been in the “best interests of the charity”, according to the regulator.

In 2014, the Commission issued a “formal action plan” requiring the charity to hold trustee elections. Those elections took place in May 2015 but the regulator found that “those currently involved in the administration of the charity" had failed to comply fully with the Commission's action plan.

Complaints about the election process forced the regulator  to conclude that it was “still concerned that there may not be validly elected trustees”.

In June 2015, the Commission appointed two interim managers - Paul Ridout and Con Alexander of Veale Wasbrough Vizards LLP - under the Charities Act 2011.

The two managers will “have all the powers and duties of the trustees”, the regulator said.

A statement by the regulator said: “The interim managers will act to the exclusion of the individuals currently involved in the administration of the charity.

"This is a temporary appointment and will be reviewed by the commission on a regular basis in line with normal procedures."

Issues under scrutiny at the charity include “the decision making of individuals involved in the administration of the charity including the management of conflicts of interest; the extent to which charity funds are at risk; whether there are currently any validly appointed trustees; the future governance arrangements for the charity.”

The inquiry will also examine “whether mismanagement and/or misconduct on the part of the individuals involved in the administration of the charity in the administration and management of the charity”.

Civil Society News contacted the Enfield Island Village Trust but did not receive a response by the time of going to press.

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