Reorganisation of charities
I1I214Endowments
1
The 2005 Act is modified in accordance with subsections (2) and (3).
2
In section 42 (reorganisation: supplementary), for subsections (6) and (7) substitute—
6
But, despite subsection (5), sections 39 and 40 apply—
a
to any endowment held by such a charity,
b
where the property of a charity constituted under an enactment consists only of an endowment or endowments, to the charity.
7
Where an application for a reorganisation scheme is made by virtue of subsection (6)(a)—
a
a reference in section 39(1)(a) or 40(1)(a) to a condition being satisfied in relation to a charity is to be read as a reference to a condition being satisfied in relation to an endowment,
b
the reference in section 41 to a charity’s constitution is to be read as including a reference to an instrument governing an endowment,
c
a reference in subsection (2) or (3)(a) to the purposes of a charity is to be read as a reference to the purposes of an endowment,
d
a reference in subsection (2)(c) or (d) or (3)(a) to a charity’s constitution is to be read as a reference to—
i
a charity’s constitution as it relates to an endowment,
ii
an instrument governing an endowment,
e
the references in subsection (3)(c) to a charity are to be read as references to an endowment.
8
Where an application for a reorganisation scheme is made by virtue of subsection (6)(b), a reference in section 41 or in subsection (2)(c) or (d) or (3)(a) to a charity’s constitution is to be read as including a reference to an instrument governing an endowment.
9
For the purposes of subsections (6) to (8)—
a
“endowment” has the same meaning as in Part 6 (reorganisation of endowments) of Education (Scotland) Act 1980,
b
for the avoidance of doubt, income derived from an endowment is to be treated as being part of the endowment.
10
The Scottish Ministers may by regulations—
a
modify this section so as to amend the meaning of “endowment”,
b
disapply subsection (6) in relation to any charity or endowment, or type of charity or endowment, specified in the regulations.
3
In section 103(5) (orders, regulations and rules), after paragraph (ba) (inserted by section 18(8)(b)), insert—
bb
regulations under section 42(10),
4
The Education (Scotland) Act 1980 is modified in accordance with subsection (5).
5
In section 122(4) (interpretation of Part 6), for “the governing body of which is a charity within the meaning of section 106” substitute “which may be reorganised by virtue of section 42(6)”
.