Suzanne Goodband v The Charity Commission for England and Wales

19 January 2024

[2024] UKFTT 111 (GRC)

First-tier Tribunal

A charity trustee was accused of misusing funds and conflicts of interest. A court agreed she'd done wrong but reduced the punishment from 12 to 7 years because she wasn't being dishonest, just careless. The court still said she wasn't fit to be a trustee again for the next 7 years.

Key Facts

•Suzanne Goodband (Appellant) appealed a Charity Commission disqualification order.
•The Commission disqualified Ms. Goodband from being a charity trustee for 12 years under section 181A of the Charities Act 2011.
•The order stemmed from misconduct and mismanagement during Ms. Goodband's tenure as chair of the Island Health Trust.
•Allegations included conflicts of interest from consultancy contracts with her own company, excessive remuneration, and expenditure outside the charity's objects.
•The Tribunal upheld the disqualification but reduced the period to 7 years.

Legal Principles

The Charity Commission can issue disqualification orders under section 181A of the Charities Act 2011 if satisfied that certain conditions are met (unfitness, public interest).

Charities Act 2011, section 181A

The disqualification period must be proportionate (not exceeding 15 years) under section 181B of the Charities Act 2011.

Charities Act 2011, section 181B

Misconduct and mismanagement are ordinary English words, encompassing failures to act as an ordinarily prudent person of business, considering both process and substance. Guidance from the Charity Commission provides illustrations but doesn't restrict the meaning.

Mountstar (PTC) Limited v Charity Commission for England and Wales (CA/2013/001 and 003) and Scargill v Charity Commission (unreported 4 September 1998)

The burden of proof is on the Commission to demonstrate that the statutory criteria are met. If successful, the burden shifts to the Appellant to show why the order shouldn't be made or should be modified.

Case Law

Outcomes

Appeal upheld in part.

The Tribunal agreed Ms. Goodband was unfit to be a charity trustee but reduced the disqualification period from 12 to 7 years due to mitigating factors such as the lack of dishonesty and the significant impact the proceedings had on her career.

Suzanne Goodband v The Charity Commission for England and Wales

Key Facts

Legal Principles

Outcomes

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