Commentary on provisions of Act Section 9: Automatic disqualification from being a trustee
Section 9 amends section 178 of the Charities Act 2011 and inserts new section 178A into the Act to extend the criteria that automatically disqualify a person from being a charity trustee.
	The existing criteria for automatic disqualification remain unchanged. So, for example, a person with an unspent conviction for an offence involving deception or dishonesty is automatically disqualified until the conviction is spent or a waiver is granted by the Commission.
	Cases "H" to "K" are new criteria for automatic disqualification which are not criminal offences.
Case "H" is where a person has been found guilty of contempt of court in civil proceedings where a false statement or disclosure is made.
Case "I" is where a person has been found guilty in the High Court of disobedience to a Commission order or direction.
Case "J" is designation under terrorist asset-freezing legislation. Designation under terrorist asset-freezing legislation can be made only on the basis of reasonable belief of involvement in terrorism, and only if it is necessary for purposes connected with protecting the public from terrorism. There is a right of appeal against such a designation. Under Case J the disqualification would last until the designation is removed.
Case "K" is where a person is subject to the notification requirements of Part 2 of the Sexual Offences Act 2003, sometimes referred to as being on the "sex offenders register".
	Subsection (6) inserts new subsections (3) and (4) into section 178. These provide that where a person is disqualified under section 178 from charity trusteeship they are also to be disqualified from positions with senior management functions. A senior management function is defined in new subsection (4). In effect it is the most senior executive position in a charity, and where control of the charity’s finances has been delegated, the person (other than the most senior executive) who controls the finances.
	New section 178A (inserted by subsection (7)) introduces convictions for several criminal offences as new criteria which would automatically disqualify a person from acting as a charity trustee until the conviction is spent or a waiver granted by the Commission. There is the potential for an overlap with the current "offences involving dishonesty or deception" criteria, which is dealt with by section 9(3).
	Offences that have been superseded by those listed are also caught by new section 178A(2), and ancillary or inchoate offences are caught by new section 178A(3).
	New section 178A(4) provides a power for the Minister for the Cabinet Office to make regulations to amend the list of criteria (the Minister is required to consult if the regulations add a new offence). Such regulations would be subject to Parliamentary debate and approval before they could be made.
	The existing regime of waiver under section 181 Charities Act 2011 would also apply to persons disqualified under these new criteria, enabling such persons to apply for their disqualification to be waived in relation to a particular charity, class of charities, or any charity.
	The civil and criminal consequences of acting whilst disqualified (sections 183 and 184 Charities Act 2011) are extended to disqualified persons holding an office or employment from which they are disqualified under new subsections (3) and (4) of section 178 Charities Act 2011.