§ Lord Denningasked Her Majesty's Government:
Whether they accept that the Charity Commissioners have to take care when giving advice under Section 24 of the Charities Act 1960; and if so whether there is any remedy open to any of Her Majesty's subjects injuriously affected by their failure to be careful.
The Minister of State, Home Office (Earl Ferrers)Her Majesty's Government accept that, as the court indicated inMills and others v. Winchester Diocesan Board of Finance and others, the Charity Commissioners have to take care when giving advice to charity trustees under Section 24 of the Charities Act 1960 on any matter affecting the performance of their duties. If the commissioners have given advice under that section, a charity trustee will not be personally liable for acting in accordance with it, provided that the conditions set out in the section are satisfied.
The commissioners' advice merely protects the charity trustees against liability should their advice prove to be erroneous. It does not legalise an unlawful act. If a third party is injuriously affected by unlawful acts by charity trustees who have acted upon the Commissioner's advice, it may be open to that party to bring proceedings against the trustees with a view to seeking redress against the trust property.
An action against the commissioners themselves would not seem possible following the decision in Mills and others v. Winchester Diocesan Board of Finance and others. In that case it was held that the commissioners did not owe a duty of care to the potential objects of a charity.