The new Regulations provide for what must happen when a charitable incorporated organisation (CIO) becomes insolvent or is dissolved for any other reason, and make provision for the restoration to the register of a dissolved CIO.
The Regulations make provision for the dissolution of a CIO either through:
- a bespoke dissolution procedure; or
- the insolvency and dissolution procedures set out in the Insolvency Act 1986 (with appropriate technical modifications).
The Regulations also make provision for the restoration to the register of a dissolved CIO in certain circumstances.
In summary the Regulations:
• provide that normally a CIO is subject to the same insolvency and dissolution procedures as a registered company;
• establish an alternative regime for the dissolution of a CIO, under which a CIO can apply to the Charity Commission for voluntary dissolution;
• set out the procedure once a CIO has applied for dissolution;
• provide that the Charity Commission must dissolve a CIO itself where the CIO is not in operation; is no longer a charity; or is being wound up;
• make provision for a CIO’s property to pass to the official custodian for charities; and
• set out the circumstances in which a dissolved CIO can be restored to the register.
Published on 07/01/2013