I realise this might be a bit of a specialist question, but I have tried posting on charity forums and they are all so quiet! MN is always busy so I'm going there might be a user with experience of running a charity or being on a board who can advise me here. Thank you...
I am a non-executive director of a Ltd company (NFP) and we are preparing to register it as a charity, of which Iwill be one of the trustees. We have had a number of consultationswith advisors andother charities & CEO's to discuss the possibility of employing the current CEO as CEO of the charity, whilst also having them on the board of trustees. The person involved is also the founder of the organisation. Our reasons for believing this to be in the interests of the charity are that they have a pivotal role with the community / stakeholders and with the charity, thatthe charity will benefit from them having a role in thestrategic oversight of the charity.
We realise that this circumstance is not common, and for good reason - we are certainly extremely aware and are not in any Kids Company territory. We have sought advice from charities that have done this successfully, but I wanted to seek advice here to see if anyone has any experience of this.
At the moment, our understanding is that we would need to ensure strong risk mitigation and governance procedures are recorded to address any potential conflict ofinterest. We don't forseenumerous areas where conflict of interest would occur other than the obvious -discussion of the CEO's salary, during which the person concerned would leave the meeting and this step would be clearly minuted. Other than that a general openness and transparency over any potential conflicts of interest would be our approach.
Would anyone have any advice about possible wording for clause(s) to include in our articles here, or whether authorisation ought to be sought separately? If the CC came back to ask for further evidence, what would they be looking for other than the assurances I have outlined above?
If anyone has experience of registering an existingCLGas a charity generally I would be most interested to read about it.
Thank you.
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Ltd company registering as charity - trustee being employed
13 replies
CharityTrustee · 04/11/2019 18:02
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