A theatre charity which ran an arts centre in Milton Keynes was ordered by the Charity Commission to hold an AGM and seek help with its governance after the regulator found signs of “historic poor management”.

The Commission said it became concerned about Creed Street Theatre and Arts Centre Trust after reports of serious failings, and opened an operational compliance case – a less serious form of investigation than a statutory inquiry – to examine the issues.

It found that the charity, which ran an arts centre, was planning to sell the building, and this had led to disputes between current and former trustees.

“We found no evidence of deliberate wrongdoing by trustees or of attempts by trustees to personally benefit from the charity,” the Commission said in its report, published today. “One of the charity’s trustees had loaned the charity money, but that loan was to the charity’s benefit, in that it was interest free and was helping the charity manage its financial difficulties.

“However, we found that there had been historic poor management at the charity. Decisions had not been properly documented and the charity had not held an AGM for two years. Similarly, the trustee’s loan to the charity was not initially supported by a suitable formal loan agreement.

“It was clear that the charity needed to seek expert governance and legal advice to resolve these issues and to help with the sale of the building.”

The Commission said the trustees obtained specialist legal advice, which allowed them to sell the building at market rate to another local charity.