§ Lord Denningasked Her Majesty's Government:
Following the first Answer by Earl Ferrers on 10 July (Official Report, col. 86), whether the "two 1290WA stages" were carried out in each case; and if so, whether in the first stage the Charity Commissioners gave any indication of the way in which the proceeds of sales should be disposed of; and whether in the second stage the Secretary of State established a scheme for the disposal of the proceeds of sale and in relation to what locality.
The Minister of State, Home Office (Earl Ferrers)In appropriate cases trustees applying to the Charity Commissioners for consent to a sale were asked if the proceeds were to be dealt with by an order made by the Secretary of State for Education and Science under Section 2 of the Education Act 1973 and, if so, whether application had been made to the Secretary of State for such an order.
If the answer to both questions was in the affirmative and before authorising the sale, the commissioners sought confirmation from the Secretary of State that an application had been received under Section 2 and that he was prepared to make such an order. In these circumstances it was unnecessary for the commissioners to indicate to the trustees how the proceeds of the sale should be disposed of.
§ Lord Denningasked Her Majesty's Government:
Following the second Answer of the Earl Ferrers on 10 July (Official Report, col. 88), accepting that the misapplication would constitute an "unlawful act", whether there was any "possibility or action" against the Charity Commissioners or the trustees with a view to seeking redress against the trust property or otherwise.
Earl FerrersI would refer the noble and learned Lord to the second and third paragraphs of my Answer on 19 June. Whether any action would lie against the trustees to seek redress against the trust assets would depend upon the facts present in the particular case.