Part 3: Charity Names Section 25: Working names etc
Section 25 confers enhanced powers on the Charity Commission to require charities to change, or stop using, unsuitable names.
	The section distinguishes between a "name" (the charity’s formal name, which will usually be set out in its governing document), and a "working name" (a name under which a charity carries out its activities). A working name is a name which is used to label the charity itself and not the name of specific projects, events and campaigns carried out by the charity. For example, the charity Charity Projects uses the name Comic Relief to run an event known as Sports Relief. "Charity Projects" is the formal name and "Comic Relief" is a working name but "Sports Relief" is not.
	The Charity Commission can issue a direction under section 42 of the CA 2011 requiring a charity to change its formal name in five situations. Section 25 extends the scope of those directions to working names, so that a section 42 direction can both (a) require a charity to change its formal name, and (b) require a charity to stop using a working name (the charity could still use one or more different working names instead). The section includes a requirement that the Charity Commission specify a period in the direction within which compliance is to be achieved.
	The first basis on which the Charity Commission can issue a direction under section 42 is if the charity’s formal name (or, as a result of the amendments mentioned above, its working name) is the same as, or too like, the formal name of another charity. Prior to the commencement of the Act, the direction could only be given on this ground if the first charity was registered and provided that the direction was given within 12 months of registration of its name. Section 25(c)(i) amends section 42 so that a direction can be given to a charity even if it is not registered (and, if it is registered, regardless of whether the direction is given within 12 months of registration of its name), therefore creating consistency between all five situations in which a section 42 direction can be issued. Second, it allows a direction to be given if the similarity is with another charity’s working name.
	Paragraphs 33 to 35 of Schedule 2 make equivalent changes to the provisions concerning the power of the Charity Commission to refuse applications to register a CIO, to convert to a CIO, and to amalgamate CIOs; registration can be refused if the proposed name is the same as, or too like, not just the formal name but also the working name of another charity.
	A section 42 direction confers on charity trustees the power to make the change required by the direction regardless of any restrictions on making such changes contained in the charity’s governing documents (for example, naming rights of members or third parties).
	Paragraph 36 of Schedule 2 amends Schedule 6 to the CA 2011 to confer on charities a right of appeal against a section 42 direction by the Charity Commission that a working name no longer be used.
	Paragraph 46 of Schedule 2 amends the Companies Act 2006 to make clear that, when a section 42 direction has been issued to a charitable company, the name of the company can be changed by a resolution of the directors (rather than requiring a resolution of the members, as is usually the case for a change of name by a company).