Part 3: Charity Names Section 26: Power to delay registration of unsuitably named charity
Section 26 inserts section 45A into the CA 2011, which confers on the Charity Commission a discretion to delay the registration of a charity if it has issued a direction under section 42 requiring the charity’s name to be changed. The power is a discretionary one to delay registration while the section 42 process runs its course.
	The delay cannot, however, last indefinitely. The delay may last until the earlier of (1) the charity trustees complying with the section 42 direction and notifying the Charity Commission that they have done so, or (2) the "maximum postponement period" expiring (section 45A(2)). Since the power to delay registration is a discretionary power for the Charity Commission, the stay can also end on an earlier date if the Charity Commission so decides. The maximum postponement period is a longstop. The stay will come to an end before the expiry of the maximum postponement period if the charity trustees notify the Charity Commission that they have complied with the direction. But if they do not comply with the direction the power to delay registration will come to an end on the expiry of the maximum postponement period. The maximum postponement period is 60 days from the expiry of the date for compliance under the section 42 direction (section 45A(3)).
	The 60-day clock stops running if "relevant proceedings" have been started and are ongoing (section 45A(4) to (7)). Relevant proceedings are defined to include challenges that might be made to the Charity Commission’s decision to issue the section 42 direction or to other enforcement action taken by the Charity Commission in respect of the section 42 direction. Relevant proceedings also include proceedings for contempt of court under section 336 of the CA 2011. The maximum postponement period is suspended during this period since the Charity Commission has no control over the timescale for such proceedings; the duration of the proceedings will depend on the timetable set by the Tribunal or court (and, in the case of challenges to the section 42 direction or other enforcement action, will also depend on the actions of the complainant). The 60-day clock starts running again once the relevant proceedings have been concluded and the time limit for any appeal has passed (section 45A(7)).
	In summary, therefore, following expiry of the deadline for compliance set out in the section 42 direction, the Charity Commission has 60 days to take enforcement action in order to compel the charity to change its name. If enforcement action is not taken (or does not result in the charity’s name being changed) within that 60-day period, the stay expires and the Charity Commission must register the charity. But the 60-day period is suspended for the duration of any legal challenges to the section 42 direction or to any associated enforcement action.