Part I CHARITIES
Charity property
29 Divestment of charity property held by official custodian for charities.
(1)
The official custodian shall, in accordance with this section, divest himself of all property to which this subsection applies.
(2)
Subsection (1) applies to any property held by the official custodian in his capacity as such, with the exception of—
(a)
any land; and
(b)
any property (other than land) which is vested in him by virtue of an order of the Commissioners under section 20 of the 1960 Act (power to act for protection of charities).
(3)
Where property to which subsection (1) applies is held by the official custodian in trust for particular charities, he shall (subject to subsection (7)) divest himself of that property in such manner as the Commissioners may direct.
(4)
Without prejudice to the generality of subsection (3), directions given by the Commissioners under that subsection may make different provision in relation to different property held by the official custodian or in relation to different classes or descriptions of property held by him, including (in particular)—
(a)
provision designed to secure that the divestment required by subsection (1) is effected in stages or by means of transfers or other disposals taking place at different times;
(b)
provision requiring the official custodian to transfer any specified investments, or any specified class or description of investments, held by him in trust for a charity—
(i)
to the charity trustees or any trustee for the charity, or
(ii)
to a person nominated by the charity trustees to hold any such investments in trust for the charity;
(c)
provision requiring the official custodian to sell or call in any specified investments, or any specified class or description of investments, so held by him and to pay any proceeds of sale or other money accruing therefrom—
(i)
to the charity trustees or any trustee for the charity, or
(ii)
into any bank account kept in its name.
(5)
The charity trustees of a charity may, in the case of any property falling to be transferred by the official custodian in accordance with a direction under subsection (3), nominate a person to hold any such property in trust for the charity; but a person shall not be so nominated unless—
(a)
if an individual, he resides in England and Wales; or
(b)
if a body corporate, it has a place of business there.
(6)
Directions under subsection (3) shall, in the case of any property vested in the official custodian by virtue of section 22(6) of the 1960 Act (common investment funds), provide for any such property to be transferred—
(a)
to the trustees appointed to manage the common investment fund concerned; or
(b)
to any person nominated by those trustees who is authorised by or under the common investment scheme concerned to hold that fund or any part of it.
(7)
Where the official custodian—
(a)
holds any relevant property in trust for a charity, but
(b)
after making reasonable inquiries is unable to locate the charity or any of its trustees,
he shall—
(i)
unless the relevant property is money, sell the property and hold the proceeds of sale pending the giving by the Commissioners of a direction under subsection (8);
(ii)
if the relevant property is money, hold it pending the giving of any such direction;
and for this purpose “relevant property” means any property to which subsection (1) applies or any proceeds of sale or other money accruing to the official custodian in consequence of a direction under subsection (3).
(8)
Where subsection (7) applies in relation to a charity (“the dormant charity”), the Commissioners may direct the official custodian—
(a)
to pay such amount as is held by him in accordance with that subsection to such other charity as is specified in the direction in accordance with subsection (9), or
(b)
to pay to each of two or more other charities so specified in the direction such part of that amount as is there specified in relation to that charity.
(9)
The Commissioners may specify in a direction under subsection (8) such charity or charities as they consider appropriate, being in each case a charity whose purposes are, in the opinion of the Commissioners, as similar in character to those of the dormant charity as is reasonably practicable; but the Commissioners shall not so specify any charity unless they have received from the charity trustees written confirmation that they are willing to accept the amount proposed to be paid to the charity.
(10)
Any amount received by a charity by virtue of subsection (8) shall be received by the charity on terms that—
(a)
it shall be held and applied by the charity for the purposes of the charity, but
(b)
it shall, as property of the charity, nevertheless be subject to any restrictions on expenditure to which it, or (as the case may be) the property which it represents, was subject as property of the dormant charity.
(11)
At such time as the Commissioners are satisfied that the official custodian has divested himself of all property held by him in trust for particular charities, all remaining funds held by him as official custodian shall be paid by him into the Consolidated Fund.
(12)
Nothing in subsection (11) applies in relation to any property held by the official custodian which falls within subsection (2)(a) or (b).
(13)
In this section “land” does not include any interest in land by way of mortgage or other security.