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some general guidance needed

some general guidance needed

Postby preacherman » Mon Jul 24, 2017 4:08 pm

looking for some general understanding regarding a charity and trustees. Firstly are charity trustees different to other areas, as when I google I get a lot of banking style information come up.

is there a test for due diligence, or some case law regarding due diligence relative to trustees of a charity?

I mean say I made a mistake with the finances of something I was dealing with (on behalf of a charity) as I ticked the wrong box, leading to £20,000 of debt occurring to the charity, so I cough up the cash myself without asking the other trustees, (to get the charity out of the red) which could be seen as putting the charity's interest first, then I say well it was a loan? the charity must pay me back now?

would contract law also come into play?
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Re: some general guidance needed

Postby Goldensyrup » Mon Jul 24, 2017 9:56 pm

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Re: some general guidance needed

Postby preacherman » Wed Jul 26, 2017 8:49 am



thanks wealth of info there. I will sift through it! seen some online already but this is great, thanks.

I think where I am struggling is the law of contract and a trustees position. is a single trustee also in theory 'the charity'.

if as mentioned as example only, I was a trustee, I mess up, so I pay the liability (without asking or informing other trustees at a committee meeting) to deal with it and cover my back,but at the same time it could be seen as me protecting the charity's interest, then I later say, 'it was a loan I gave to the charity which the charity must now repay here are the terms', how can it be a loan if there is no agreement and acceptance at the time I paid the liability, save for the agreement and acceptance with myself and the charity? (in my own head!)

I would have thought the law of contract still applies?
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Re: some general guidance needed

Postby shootist » Wed Jul 26, 2017 8:57 am

If you want some understanding of trustee laws then I suggest the following. Study law. Get a law degree. Seek employment with a firm of solicitors who specialise in such issues. Work for them for about five years. By that time you will have a firm understanding of what you still won't understand about trustee law. (That's not you BTW, I think it's just about anybody)
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Re: some general guidance needed

Postby dls » Wed Jul 26, 2017 10:16 am

'mess up' can cover a multitude of sins. Some may have different answers.

Trustees may be entitled to an indemnity for properly incurred expenses.
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Re: some general guidance needed

Postby preacherman » Wed Jul 26, 2017 3:19 pm

dls wrote:'mess up' can cover a multitude of sins. Some may have different answers.

Trustees may be entitled to an indemnity for properly incurred expenses.


lets say spending money you though the charity had available, but it did not have it.The charity received the benefit of what it subsequently ordered, but had no cash to pay for it. How does that fit into your multitude of sins scenario?!
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Re: some general guidance needed

Postby preacherman » Thu Jul 27, 2017 10:10 am

quasi trustee, In law, a person who reaps a benefit from a breach of trust, and so becomes answerable as a trustee.

whats the plain English of that then!
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Re: some general guidance needed

Postby atticus » Thu Jul 27, 2017 10:41 am

In plain English: if you personally benefit from a breach of trust you are liable to account to the trust. You may be ordered to pay the value of the benefit you have received. You may be ordered to pay more.
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Re: some general guidance needed

Postby preacherman » Thu Jul 27, 2017 5:35 pm

atticus wrote:In plain English: if you personally benefit from a breach of trust you are liable to account to the trust. You may be ordered to pay the value of the benefit you have received. You may be ordered to pay more.


so what is a breach of trust? do you mean the charity for instance? is the trust the charity?, or are you talking about trust as in we trusted you? and how does that make you a quasi trustee.
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Re: some general guidance needed

Postby atticus » Thu Jul 27, 2017 5:51 pm

A breach of the fiduciary obligations owed by the trustee.
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