I am aware of the current interest in proposed changes to the governance of the Shetland Charitable Trust, and note the trustees’ decision taken at the meeting on 12 May.
This decision was taken following consideration of the conclusions of an independent report on aspects of governance, commissioned by the charity – the report is publicly available.
I thought that your readers may be interested in the Regulator’s potential role.
As charity regulator, our engagement with the charity some years ago sought to remove structural conflicts of interest and to promote an effective and robust governance model where trustees could exercise their responsibility to act in the best interests of the charity.
That will continue to be our role and we are engaging with the charity to gain a full understanding of the current position and the possible courses of action.
As happened in 2012, any reorganisation application would follow the statutory process to allow us to judge whether the proposed changes would meet one of the necessary conditions and outcomes specified in the legislation.
It is not for the Regulator to amend or alter a proposed charity reorganisation, nor to second guess charity trustees by substituting other models.
Neither is this a process where those commenting on a reorganisation proposal ‘vote’ on the outcome, although ‘representations’ can be made to OSCR about the proposed changes.
However, we also expect charity trustees, in the exercise of all or any of their duties, to take into account the views of their beneficiaries and the reputation of their charity.
A charity only requires to reorganise where the charity’s constitution does not permit trustees to make such changes or introduce powers which would enable them to make the changes.
We recognise of course the particular circumstances of the Shetland Charitable Trust and, if an application is made, we will take all relevant information into account when exercising our functions.
Office of the Scottish Charity Regulator