News & Opportunities
Legal changes will affect charitable companies
Companies legislation was introduced earlier this year to create stronger, more transparent governance and to reduce some of the administrative burden. Importantly, this includes two measures that could directly affect museums that are constituted as charitable companies:
From October 2016, there will be a Ban on Corporate Directors. This means that all directors, including those that are Trustees of a museum, must be natural persons. Any appointment of a corporate director, for example to represent a stakeholder organisation such as the local authroity, after this date will be void. Any existing corporate directors will cease to be directors one year after the changes take effect - but there are possible exceptions to this ruling anticipated.
In an attempt to reduce administrative burden, Annual Returns will no longer have to be filed at Companies House from April 2016. The new requirement is to file an annual compliance statement confirming that Companies House has been duly notified of all changes (such as director appointments and change of director particulars) within that period. This change only affects the return to Companies House and not the annual return to the Charity Commission.