The charity commission has recently published guidance for charity trustees who need to take or defend legal proceedings. The document clarifies specific issues that trustees need to consider when faced with litigation and will help them comply with their legal obligations and duty to act in the best interest of the charity. The document also gives many specific examples to guide the trustee.
Trustees will usually have the powers to take or defend legal action, however, they will need to consider that it must be in the best interest of the charity and trustees should be able to demonstrate that their decision was made accordingly. In some cases consent from the commission is required and these are discussed in the booklet.
The guidance discusses the alternatives to legal action which may be appropriate, including dispute resolution through negotiation and mediation.
A full copy of the guidance can be found at: