§ 37 Clause 10, page 16, line 7, after 'any' insert 'public'.
§ 38 Page 16, line 12, leave out 'charitable'.
§ Lord Fraser of CarmyllieMy Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 37 and 38.
Clause 10 makes provision enabling trustees of small trusts with an annual income of less than £1,000 to spend capital where their founding deed prohibits the expenditure of such capital. The conditions which trustees must observe in proceeding with such expenditure are contained in subsections (2) and (3). These include a requirement of unanimous resolution by the trustees, a requirement to advertise their intentions, and a requirement to notify me.
In the Bill as originally drafted the powers to expend capital were limited at subsection (2)(a) by a requirement to have regard to the charitable purpose of the trust. However, the trust may not in fact be charitable. We have extended the provisions at Clauses 8 and 9 to embrace public trusts whether or not they are charitable. In the spirit of the earlier amendments I would not wish to limit Clause 10 to. charitable trusts.
Moved That the House do agree with the Commons in their Amendments Nos. 37 and 38.—(Lord Fraser of Carmyllie.)
§ On Question, Motion agreed to.