Letter – Declaration of Trustee’s/Director’s Interest in Proposed Transaction (Charitable Company Limited By Guarantee)
This is one of two types of declaration of a trustee’s interest in a proposed transaction for a charity. It is for use where the legal form of the charity is a Charitable Company Limited by Guarantee.
The alternative type, for use where the legal form of the Charity is a Charitable Incorporated Organisation (“CIO”), is the Letter – Declaration of Trustee’s Interest in Proposed Transaction (CIO).
In order to fulfil their legal duty under charity law to act only in the best interests of their charity, charity trustees have a personal responsibility to avoid any conflict of interest and declare all conflicts of interest. A trustee should be meticulous about declaring any actual or potential conflict of interest affecting him/herself and connected parties, and should declare the nature and extent of any interest, whether direct or indirect.
This template letter can be used by a trustee to disclose such an interest before a trustees board meeting at which a proposed transaction or arrangement is to be discussed by the board. This template also contains an undertaking by a trustee to disclose any conflict of interest from time to time so that the charity’s register of trustees’ interests is kept fully up to date. Further, it includes optional guidance notes to help the charity and the trustees identify what is or may be a conflict of interest.
The trustees of a charity whose legal form is a charitable company limited by guarantee will also be directors of the company. The Companies Acts require them, as directors, to declare an interest in a proposed transaction or arrangement. This template will also serve as a means by which a trustee director can provide disclosure to the charitable company of such an interest.
This Letter – Declaration of Trustee’s/Director’s Interest in Proposed Transaction for a Charity (Charitable Company Limited By Guarantee) can be used in conjunction with the Conflict of Interest Policy for a Charitable Company Limited By Guarantee which can also be found in this subfolder
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