Bethan Walsh examines the Children’s Investment Fund Foundation ruling & its implications for charitable companies
- Does a member of a charitable company have a fiduciary duty to act in the best interests of that charity?
On 6 July 2018, the much-anticipated decision of the Court of Appeal confirmed the High Court’s decision that a member of the Children’s Investment Fund Foundation (UK) (CIFF), a charitable company limited by guarantee, had fiduciary duties to act in the best interests of the charity, a duty that is also imposed on members of a charitable incorporated organisation (CIO). The case before the Court of Appeal was Lehtimäki v Children’s Investment Fund Foundation (UK) and others [2018] EWCA Civ 1605, [2018] All ER (D) 52 (Aug).
The Court of Appeal was asked to rule on two key areas: first, whether or not a member of a charitable company has a duty to act in the best interests of that charity; and second, whether such a member could be required to act under the direction of the court. This article focuses on the former area, being the one likely
