Guidance Notes

The Charity Governance Code recommends that trustees ‘consider the benefits and risks of partnership working, merger or dissolution if other organisations are fulfilling similar charitable purposes more effectively and/or the charity’s viability is uncertain’.

This guidance note seeks to highlight the advantages and disadvantages of collaboration and merging with another charity and covers the legislative issues around charities regulated by the Charity Commission in England and Wales.

All trustees undertaking a proposal to work in collaboration, jointly or to merge should carry out a due diligence examination of the prospective partner charity. A comprehensive due diligence exercise will enable trustees to establish a full knowledge base of the assets and liabilities of each charity – for example, employees, rent arrears, property leases, endowments, funding arrangements and governance structures.

This guidance note proposes outline terms of reference for the risk committee of a company seeking to comply fully with the UK governance requirements.

This guidance has been produced primarily for quoted public companies that are looking to provide directors with practical guidance on their general duties under the Companies Act 2006 (the Act).

It is essential that the audit committee is properly constituted with a clear remit and identified authority.

The terms of reference for the nominations committee for a company seeking to comply fully with the requirements of the UK Corporate Governance Code.

There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors.

Guidance for charities in using best practice principles to define the role and responsibilities for charity trustees.