Over the life of a charity there will be occasions when a trustee leaves the board. Your charity’s governing document may include a set number of years trustees can serve for, however a trustee can be re-appointed for another term, unless your governing document says otherwise.
Trustees can resign before the end of their set term and this would need to be submitted in writing.
How to remove a trustee from the board
You usually need a valid reason to remove a trustee, for example if they have done something that damages your charity’s reputation.
If your charity is a company, you have the right to remove a director, providing you follow the correct procedures. You have this right under the Companies Act 2006.
Vote of no confidence
You can hold a vote of no confidence to encourage a resignation. If this isn’t part of your charity’s rules, the vote has no legal power and the trustee won’t have to resign.
Legal procedures to remove or replace trustees
It’s usually straightforward for a trustee to leave if your charity is a company or if there are procedures written in your governing document.
How to update your charity’s details
It is important when a trustee leaves to update the records held with the Charity Commission.
If the retiring trustee had some special responsibilities, it’s a good idea to arrange a handover. This may require the trustee who is leaving to:
- hand over the charity’s password for the Commission’s website
- train others in how to complete the annual return
- tell the Commission your named contact has changed
- update title deeds if land or property is involved
It is also important to consult your governing documents when making any changes to trustees as this may contain certain rules or procedures which should be followed.
For more information please call 01482 427360 or email help@360accountants.co.uk. You can also visit our charity specialisms page to learn more about our services.
