When submitting an application to incorporate a Trust Board with Companies Office, a statutory declaration is required on form CT1. This requires the declarant to agree to two statements, the second that:
“There are no trusts, other than those set out in the trust document, under which the applicants for incorporation hold any property.”
We were recently asked what this sentence actually means. Frankly, we were not sure (and rather suspect that a number of people readily agree to the statement without actually understanding its meaning!)
So, we asked Steven Moe, an expert in charity law with lawyers ParryField, if he could perhaps provide some clarification.
He responded: “This requirement comes from the Charitable Trusts Act 1957 which asks in section 10(2)(a) for applicants to provide documents that outline the trusts and property held. It then goes on in section 10(2)(b) to require:
“a statutory declaration made by one of the subscribers to the application setting forth any trusts on which the applicant or applicants hold any property, being trusts not set out in any document or copy of a document accompanying the application”
This is confusing – is it meant to cover any trust a trustee might have (eg family trusts unrelated to this charity)? We have advocated that a guidance note be added and that the wording itself be clarified – but no change as yet.
Our view is that read in context with section 10(2)(a), this is referring only to property relating to this trust. Section 10(2)(a) is about documents outlining the trusts – so we think this part is in case other documents exist and they need to make a statutory declaration to outline anything else. ”
We share this comment in the hope that it will help anyone else who may be confused by the statement and requirement. As always this is offered as guidance only and no responsibility can be accepted. You should not hesitate to seek your own legal advice.