Part 6: Legal proceedings Section 36: Costs incurred in relation to Tribunal proceedings etc
Section 36 inserts a new section 324A into the CA 2011. Section 324A confers on the Charity Tribunal (both the First-tier Tribunal and the Upper Tribunal) a power to make an "authorised costs order" ("ACO"). An ACO will provide charity trustees with advance assurance that any legal costs that they incur in proceedings before the Charity Tribunal are a proper use of the charity’s funds and will therefore be payable from the charity’s funds. An ACO will be equivalent to a "Beddoe" order 15 that can be obtained from the court in respect of costs that are proposed to be incurred on behalf of a trust. The principles to be applied by the Tribunal in deciding whether to grant an ACO will be the same as those applied by the court in respect of Beddoe applications. The procedure for applying for an ACO will be set out in Tribunal Procedure Rules.
	An application to the Tribunal for an ACO will not constitute "charity proceedings" within the meaning of section 115 of the CA 2011 because it will not be an application to a "court". It will not, therefore, be necessary to obtain permission from the court or Charity Commission.