Charities Act 2009 – Further aspects of Act to be commenced - Minister Carey takes steps to protect charity trustees

Pat Carey T.D., Minister of Community, Equality and Gaeltacht Affairs, who has responsibility for the regulation of charities, is pleased to announce that he will be commencing two further sections of the Charities Act 2009.

Minister Carey said -

“I am very conscious of the great good work carried out by many people who are charity trustees.  Many dedicated people give of their time and energy in this way, and they are pivotal to the success of Ireland’s charities sector. However, there have been concerns over the current legal position in Ireland that charity trustees may in certain circumstances be personally liable for losses accruing to charities through their actions. This may serve to discourage persons from acting as charity trustees, so I am anxious to allay any such fears.”

Minister Carey continued -

“I am very pleased therefore to be able to commence further sections of the Charities Act 2009, which will help to safeguard the position of those charity trustees who fulfil their duties in good faith. Section 90 of the Charities Act, which I am now commencing, will grant power to the courts, in the event of proceedings against a charity trustee, to grant relief to such trustees from personal liability for breach of trust, where it appears to the relevant court that the trustee acted honestly and reasonably.

My hope is that these safeguards will reassure those who are currently acting as charity trustees and will encourage more people to take on this valuable and important work.

I am also commencing section 4 of the Act, which will allow me to make regulations under the Act as we move towards the introduction of the new regulatory framework for charities in Ireland.”
Issued by the Press & Information Office at the Dept. of Community, Equality and Gaeltacht Affairs
Eisithe ag Oifig Preasa & Eolais na Roinne Gnóthaí Pobail, Comhionannais agus Gaeltachta
Tel/Teil: 01 6473130 Fax/Facs: 01 6473215/ 087 7956378
Email/ Ríomhphost: eolas@pobail.ie Web/Gréasán: www.pobail.ie

Editor’s Note
This Order commences sections 4 of the Charities Act 2009 (“the Act”). The purpose of this Order is to allow the Minister to make orders or regulations under the Act – commencement would enable the Minister to make regulations before the new Authority is established, if considered appropriate.  Orders and regulations made under the Act shall, except those made under sections 1(2) or section (12), be laid before both Houses of the Oireachtas. An Order or regulation under this Act may be annulled if a resolution annulling such an order or regulation is passed by either House within 21 days.

This Order also commences sections 90 of the Charities Act 2009 (“the Act”). The purpose of this Order is to grant powers in any proceedings to the courts to grant relief to charity trustees from personal liability for breach of trust, where the opinion of the court is that, while the trustee may be liable for the breach, he or she acted in good faith and ought to be excused. In such circumstances, the court may then grant relief in whole or in part under the provisions of section 90 of the Act.

This note does not purport to be a legal interpretation.