.”, 20 (d) in subsection (4), after “subsection (1)” insert “or (2A)”, (e) after subsection (6), insert— “(7) The Scottish Ministers may by regulations— (a) modify this section so as to add or remove a person, or a description of a person, to or from the persons for the time being mentioned in or 25 falling within this section as a person who is disqualified from being a charity trustee, (b) modify the definitions in section 70 as Ministers consider appropriate in consequence of any modification of this section or otherwise.”. (4) In section 70 (disqualification: supplementary)— 30 (a) in subsection (3), for “section 69(2)(b)” substitute “section 69(2)(b)(i)”, (b) after subsection (3), insert— “(4) For the purpose of section 69(2)(b)(ii), “specified bankruptcy-related measure” means— (a) a bankruptcy restrictions order, interim order or undertaking under the 35 Bankruptcy (Scotland) Act 2016, the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989, (b) a debt relief restrictions order, interim order or undertaking under the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 (SI 1989/2405), 40 (c) a moratorium period under a debt relief order under either of those enactments. 6 Charities (Regulation and Administration) (Scotland) Bill 1 (5) For the purposes of section 69(2)(d) and (da), a “relevant order” is— (a) in England and Wales, an order made— (i) by the Charity Commission for England and Wales under section 79(4) of the Charities Act 2011 or by the Commission or the 5 Charity Commissioners for England and Wales under a relevant earlier enactment, or (ii) by the High Court of Justice in England and Wales, on the grounds of any misconduct or mismanagement in the administration of the charity for which the person was responsible, or 10 which the person knew of and failed to take any reasonable step to 1 oppose, or which the person's conduct contributed to or facilitated, (b) in Northern Ireland, an order made— (i) by the Charity Commission for Northern Ireland under section 33(2)(i) of the Charities Act (Northern Ireland) 2008, or 15 (ii) by the High Court of Justice in Northern Ireland, on the grounds of any misconduct or mismanagement in the administration of the charity for which the person was responsible, or to which the person was privy, or which the person’s conduct contributed to or facilitated. 20 (6) In subsection (5)(a), a “relevant earlier enactment” means— (a) section 79(2)(a) of the Charities Act 2011 (as in force before the commencement of sections 4 and 9 of the Charities (Protection and Social Investment) Act 2016), (b) section 18(2)(i) of the Charities Act 1993 (power to act for protection 25 of charities), (c) section 20(1A)(i) of the Charities Act 1960, or (d) section 20(1)(i) of the 1960 Act (as in force before the commencement of section 8 of the Charities Act 1992).”. (5) In section 103(5) (orders, regulations and rules), after paragraph (c), insert— 30 “(ca) regulations under section 69(7),”. 6 Disqualification: senior management functions (1) The 2005 Act is modified as follows. (2) After section 69A (inserted by section 4(3)), insert— “69B Disqualification from holding office with senior management functions 35 (1) While a person is disqualified by virtue of section 69 from acting as a charity trustee in relation to a charity, the person is also disqualified from holding an office or employment with senior management functions in the charity. (2) But where a person is disqualified by virtue of section 69 from acting as a charity trustee in relation to a charity by reason of an order made by the 40 Charity Commission for England and Wales under section 181A of the Charities 7 Charities (Regulation and Administration) (Scotland) Bill Act 2011, the person is not disqualified under subsection (1) to the extent that the order does not apply— (a) in relation to holding an office or employment with senior management functions in a charity, or 5 (b) in relation to a particular office or employment or to any office or employment of a particular description. (3) OSCR may, on the application of a person disqualified under subsection (1), waive the disqualification either generally or in relation to a particular charity or type of charity. 10 (4) A waiver under subsection (3) may relate to a particular office or employment 1 or to any office or employment of a particular description. (5) OSCR must notify a waiver under subsection (3) to the person concerned. (6) A function of an office or employment held by a person (“P”) is a senior management function if— 15 (a) it relates to the management of the charity, and P is not responsible for it to another officer or employee (other than a charity trustee), or (b) it involves control over money and the only officer or employee (other than a charity trustee) to whom P is responsible for it is a person holding an office or employment with senior management functions other than 20 ones involving control over money.”. (3) In section 70 (disqualification: supplementary)— (a) in subsection (1), in the opening words after “69” insert “, or (as the case may be) holds an office or employment with senior management functions in the charity while disqualified by virtue of section 69B,”, 25 (b) for subsection (2) substitute— “(2) Any acts done— (a) as a charity trustee by a person disqualified by virtue of section 69 from being a charity trustee, or (b) by a person holding an office or employment with senior management 30 functions in a charity while disqualified by virtue of section 69B from holding such an office or employment in the charity, are not invalid by reason only of the disqualification.”. (4) The title of Chapter 9 becomes “Charity trustees and senior managers”. (5) In section 71 (decisions), after paragraph (p) insert— 35 “(pa) refuse to grant a waiver under section 69B(3),”. (6) In section 72(2)(a) (notice of decisions), for “or (p)” substitute “, (p), (pa)”. 7 Record of persons removed from office (1) The 2005 Act is modified as follows. (2) In section 34(5)(ea) (powers of Court of Session)— 40 (a) for “purpose” substitute “purposes”, (b) after “trustee)” insert “and section 70ZA (record of persons removed from office)”. 8 Charities (Regulation and Administration) (Scotland) Bill (3) After section 70, insert— “70ZA Record of persons removed from office (1) OSCR must keep, in such manner as it thinks fit, a record of all persons who have been removed, by order of the Court of Session under section 7 of the 5 Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 or section 34 of this Act, from being concerned in the management or control of any body. (2) The record must contain a separate entry for each person entered in it setting out— (a) the person’s name, 10 (b) the date of the order of the Court of Session removing the person from 1 being concerned in the management or control of the body, (c) the name of the body to which the order relates, (d) if the person has been granted a waiver under section 69(4) in relation to a particular charity or type of charity only, or has been granted a 15 waiver under section 69B(3), the details of the waiver including— (i) the date OSCR notified the person of the waiver, and (ii) the extent of the waiver, and (e) any other information which OSCR considers appropriate in relation to— 20 (i) the person, (ii) the body from which the person was removed. (3) Despite subsection (1)— (a) OSCR must remove a person from the record if the person has been granted a general waiver under section 69(4), 25 (b) OSCR may remove a person from the record if the person has died. 70ZB Searching the record of removed persons (1) OSCR must provide a facility by which the record kept under section 70ZA(1) may be searched by any person. (2) That search facility must allow the record to be searched by reference to, and 30 only by reference to, a person’s name. (3) Where, on an application being made to it, OSCR is satisfied that disclosing an entry in the record is likely to jeopardise the safety or security of any person or premises, OSCR must ensure that the entry is not disclosed to any person searching the record. 35 (4) OSCR may also determine other information which, though contained in the record, is not to be disclosed to any person searching it.”. (4) In section 71 (decisions), after paragraph (pa) (inserted by section 6(5)) insert— “(pb) refuse an application made for the purposes of section 70ZB(3),”. (5) In section 72(2)(a) (notice of decisions), after “(pa)” (inserted by section 6(6)) insert 40 “or (pb)”. 9 Charities (Regulation and Administration) (Scotland) Bill Appointment of interim charity trustees 8 Appointment of interim trustees by OSCR (1) Section 70A (appointment of charity trustees) of the 2005 Act is modified as follows. (2) For subsections (1) and (2), substitute— 5 “(1) OSCR may, on the request of a charity, appoint a person as an interim charity trustee for the charity where— (a) the charity has an insufficient number of charity trustees to be able to appoint a charity trustee under its constitution, and (b) the charity’s constitution does not provide a mechanism for appointing 10 a charity trustee in such circumstances. 1 (2) OSCR may, of its own accord or on the representation of any person, appoint a person as an interim charity trustee for a charity where OSCR is satisfied that— (a) the charity has no existing charity trustees, 15 (b) all of the charity’s existing charity trustees either— (i) cannot be found, or (ii) are not acting and are not expected to resume acting, or (c) the number of the charity’s existing charity trustees who fall within sub-paragraph (i) or (ii) of paragraph (b) is such that the charity is unable 20 to make a request under subsection (1).”. (3) In subsection (3)— (a) for “acting” substitute “interim”, (b) after “subsection”, insert “(1) or”, (c) after “constitution” insert “without requiring involvement from charity trustees 25 who cannot be found or are not acting”. (4) In subsection (4)— (a) for “acting” substitute “interim”, (b) after “subsection” insert “(1) or”. (5) In subsection (5)— 30 (a) in paragraph (a)— (i) the word “still” is repealed, (ii) for “acting” substitute “interim”, (iii) after “constitution” insert “without requiring involvement from charity trustees who cannot be found or are not acting”, 35 (b) in paragraph (b), for “acting” substitute “interim”, (c) in the closing words, for “acting” substitute “interim”. (6) After subsection (5), insert— “(5A) For the purpose of subsection (5)(b), no account is to be taken of any charity trustees who cannot be found or are not acting.”. 10 Charities (Regulation and Administration) (Scotland) Bill (7) In subsection (6)— (a) for “acting” substitute “interim”, (b) after “subsection” insert “(1) or”. (8) In subsection (7), for “acting” substitute “interim”. 5 (9) In subsection (8), for “acting” in both places where it appears substitute “interim”. (10) After subsection (8), insert— “(9) For the purposes of subsection (1), a request is the request of a charity if it is from— (a) the majority of the charity trustees of the charity, or 10 (b) if there are only two charity trustees of the charity, either of them.”. 1 Charity accounts 9 Preservation of and access to charity accounts and independent reports on accounts (1) The 2005 Act is modified as follows. (2) In section 44 (accounts)— 15 (a) in subsection (1)— (i) after paragraph (c), insert— “(ca) have the independent examiner or auditor make a report in respect of the examination or (as the case may be) audit (an “independent report on accounts”),”, 20 (ii) in paragraph (d), for the words “such examination or audit, send a copy of the” substitute “the independent report on accounts has been made, send a copy of the report and”, (b) after subsection (4) insert— “(4A) Regulations under subsection (4) must be framed so that a charity is not 25 required to include any information in its statement of account that is excluded from its entry in the Register under section 3(4).”. (3) After section 45A (inserted by section 11(4)), insert— “Access to charity accounts 45B Public access to charity accounts kept by OSCR 30 (1) OSCR must— (a) keep any copy of a statement of account and independent report on accounts sent to it under section 44(1)(d) for at least 5 years from the end of the financial year to which the document relates, and (b) during the period for which the copy is so kept, make it available for 35 public inspection— (i) at all reasonable times at its principal office, (ii) at such other places as it thinks fit, and (iii) otherwise as it thinks fit. 11 Charities (Regulation and Administration) (Scotland) Bill (2) It is for OSCR to determine the manner in which copies of statements of account and independent reports on accounts are made available. (3) OSCR must publicise the arrangements which it makes in pursuance of subsection (1)(b).”. 5 10 Independent reports: minor and consequential modifications (1) The 2005 Act is modified as follows. (2) In section 4(c)(iii) (application for entry in Register), after “(if any)” insert “and any associated reports forming part of the same document”. (3) In section 23(1) (entitlement to information about charities)— 10 (a) in paragraph (b), after “account” insert “and independent report on accounts”, 1 (b) in the closing words, after “account” insert “and independent report on accounts”. (4) In section 44(4)(g) (accounts), at the end insert “(including matters relating to the independent report on accounts)”. (5) In section 106 (general interpretation), after the definition of “the First-tier Tribunal” 15 insert— ““independent report on accounts” has the meaning given in section 44(1)(ca),”. 11 Removal of non-responsive charities for failure to submit accounts (1) The 2005 Act is modified as follows. 20 (2) In section 3(3)(e)(ii) (Scottish Charity Register), after “31(4)” insert “or 45A(2)”. (3) The heading of section 45 becomes “Failure to provide statement of account: preparation by appointed person”. (4) After section 45, insert— “45A Failure to provide statement of account: removal from Register 25 (1) This section applies where— (a) a charity has failed to send a copy of its statement of account to OSCR in pursuance of section 44(1)(d), (b) the time by which the statement was due to be sent to OSCR by virtue of provision made under section 44(4)(f) has passed, 30 (c) the charity has not responded to communications from OSCR in respect of the failure, and (d) a statement of account has not been prepared, and is not being prepared, under section 45. (2) OSCR may give the charity notice of its intention to remove the charity from 35 the Register. (3) Unless the charity makes contact with OSCR within 3 months of the date on which notice under subsection (2) is given, OSCR may remove the charity from the Register. 12 Charities (Regulation and Administration) (Scotland) Bill (4) A notice under subsection (2) must set out— (a) that the notice has been given because the criteria in paragraphs (a) to (d) of subsection (1) have been met, and (b) that the charity may be removed from the Register unless it makes contact 5 with OSCR within the period specified in subsection (3). (5) OSCR— (a) must publish on its website a list of charities to which a notice under subsection (2) has been issued and remains in effect, (b) may take such further steps as appear to it to be appropriate with a view 10 to bringing the giving of a notice under subsection (2) to the attention 1 of persons likely to be affected by it. (6) In relation to a SCIO, the power in subsection (3) to remove a charity from the Register is a power to take steps in accordance with regulations made under section 64(1)(d) to secure the dissolution of the SCIO and, following 15 such dissolution, to remove it from the Register.”. (5) In section 71 (decisions), after paragraph (ma), insert— “(mb) remove a charity from the Register under section 45A(3),”. (6) In section 73(2) (effect of decisions), in the opening words, after “(id),” (inserted by section 15(11)), insert “(mb),”. 20 Charity mergers 12 Recording of charity mergers and treatment of legacies (1) The 2005 Act is modified as follows. (2) After section 64, insert— “C HAPTER 7A 25 C HARITY MERGERS 64A Meaning of “charity merger” etc. (1) This section applies for the interpretation of sections 64B to 64E. (2) A “charity merger” means a scheme in which— (a) either— 30 (i) all the property, rights and liabilities of one or more charities (a “transferor”) are transferred to another charity (the “transferee”), or (ii) two or more charities (“transferors”) are amalgamated and all the property, rights and liabilities of both or all of them are transferred 35 to a new charity (the “transferee”), and (b) the transferor (or transferors) is (or are) wound up or dissolved, or is (or are) to be wound up or dissolved, in connection with the scheme. (3) A reference (however expressed) to— (a) a transferor under a charity merger is a reference to a transferor within 40 the meaning of subsection (2), 13 Charities (Regulation and Administration) (Scotland) Bill (b) a transferee under a charity merger is a reference to— (i) the transferee within the meaning of subsection (2), if it is a company or other body corporate, (ii) otherwise, the charity trustees of the transferee (within the meaning 5 of subsection (2)). 64B Notification of charity mergers (1) A transferee under a charity merger must give OSCR notice of the merger as soon as reasonably practicable after all the property, rights and liabilities of the transferor (or of all of the transferors, where there is more than one) under 10 the merger are transferred to the transferee. 1 (2) A notice under subsection (1) must— (a) include such documents and information, and (b) be given in such form and manner, as OSCR may require. 15 (3) OSCR must publicise any requirements set under subsection (2). 64C Record of charity mergers (1) OSCR must keep, in such manner as it thinks fit, a record of all charity mergers notified to it in accordance with section 64B. (2) The record of charity mergers must contain a separate entry for each charity 20 merger setting out— (a) the date of the recording of the merger in the record, (b) any other information which OSCR considers appropriate in relation to the merger. (3) Section 22 applies to documents and information which OSCR requires in 25 relation to an entry in the record of charity mergers which relates to the charity as it applies to documents and information which OSCR requires in relation to the charity’s entry in the Register. (4) In this section and sections 64D and 64E, “the record of charity mergers” means the record kept under subsection (1). 30 64D Legacies: effect of charity merger being recorded (1) This section applies where— (a) a person (the “testator”) by will bequeaths a legacy to a charity, (b) the charity to which the legacy is bequeathed becomes a transferor under a charity merger, 35 (c) the charity does not acquire a vested right in the legacy by reason only of the charity having wound up or dissolved in connection with the merger, and (d) the merger is recorded in the record of charity mergers before the date on which the charity would, but for the merger, have acquired such a 40 vested right. 14 Charities (Regulation and Administration) (Scotland) Bill (2) The transferee under the merger is entitled to receive the legacy unless it is clear from the terms of the will that the testator intended otherwise. (3) Without prejudice to the generality of subsection (2)— (a) it is to be regarded as clear from the terms of the will that the testator 5 intended otherwise if the will provides expressly that the legacy is not to be paid to a transferee under a charity merger, (b) it is not to be regarded as clear from the terms of the will that the testator intended otherwise only by reason of the will providing that the legacy is bequeathed— 10 (i) to the charity, which failing to another person (or persons), 1 (ii) to the charity and another person (or persons) and to whichever of them is still in existence or, as the case may be, is the survivor (or survivors) of them. (4) Where the legacy is bequeathed to more than one person, the share of it which 15 the transferee is entitled to receive is the share which the transferor would have received had it not been for the charity merger. (5) Subsection (6) applies where— (a) the transferee becomes the transferor under a further charity merger which is recorded in the record of charity mergers, 20 (b) that recording occurs before the date on which, but for the further merger, the transferee would have become entitled to receive the legacy by virtue of subsection (2). (6) The transferee under the further merger is entitled to receive the legacy (and so on). 25 (7) In this section, a “will” means any document of a testamentary nature and includes a reference to— (a) a testamentary trust disposition and settlement, (b) a codicil. 64E Public access to the record of charity mergers 30 (1) OSCR must make the record of charity mergers available for public inspection— (a) at all reasonable times at its principal office, (b) at such other places as it thinks fit, and (c) otherwise as it thinks fit. 35 (2) It is for OSCR to determine the form and manner in which the record of charity mergers is made available; but in doing so OSCR must ensure that the information in the record is made reasonably obtainable. (3) OSCR must publicise the arrangements which it makes in pursuance of subsection (1).”. 40 (3) It does not matter if the will (within the meaning given in section 64D(5) of the 2005 Act) which gives rise to the legacy was executed before the date the amendment made by this section comes into force. 15 Charities (Regulation and Administration) (Scotland) Bill Inquiries 13 Inquiries about former charities etc. (1) Section 28 (inquiries about charities etc.) of the 2005 Act is modified as follows. (2) In subsection (1), in paragraph (e), for the words from “which” to the end substitute 5 “as a charity despite that body not being entered in the Register,”. (3) After subsection (2), insert— “(2A) It does not matter whether a charity, body or person continues to fall within a paragraph of subsection (1), or continues to exist, for OSCR to be able to make inquiries under that subsection (but see subsection (4A)).”. 10 (4) After subsection (4), insert— 1 “(4A) Where inquiries are made by virtue of subsection (2A) into a charity, body or person which no longer falls within a paragraph of subsection (1)— (a) the inquiries must relate to the period or periods in which the charity, body or person fell within one or more paragraphs of subsection (1), 15 and (b) no direction may be given under subsection (3), unless the inquiries or, as the case may be, the direction relates to the application of protected charitable assets (see section 19).”. 14 Notice and obtaining information 20 (1) The 2005 Act is modified as follows. (2) In section 29 (power of OSCR to obtain information for inquiries)— (a) in subsection (1), the words “by notice” are repealed, (b) in subsection (2), for the opening words substitute “Where OSCR makes such a requirement, it must give a notice to the person specifying—”, 25 (c) after subsection (2), insert— “(2A) But OSCR must not give notice under subsection (2) unless and until the decision to make the requirement under subsection (1) has effect (see section 73(3)).”. (3) In section 72 (notice of decisions)— 30 (a) in subsection (2)— (i) in paragraph (a)— (A) after “(k),” insert “(l...