Charities Bill [HL]

I am grateful for the question. Of course, if a particular trustee is got at under the provisions—or the existing law, for that matter—he or she has a right to a contribution from the other trustees, equally. That can be of little solace where the other trustees have nothing to contribute. The larger point that the noble Lord makes seems to be answered along the lines of his own answer. One should not go into the business of being a trustee of a charity or a director of a charitable corporation without due regard for the way in which it is run. In particular, when one is making use of the provisions, it is a duty on every trustee and director of a corporate charity to ensure that innocent third parties are not prejudiced. The provision will operate only as an encouragement to people to say, ““We must be sure before we wind our charity up that we make proper provision for creditors””. Equally, when the Act states that,"““appropriate arrangements have been made””," a thorough job should jolly well have been done on that. That is a proper stimulus to charities to behave correctly in circumstances where otherwise innocent third parties could be prejudiced.