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Private prosecutions – A route to justice for the charity sector
Sophie Tang
While testators generally have freedom to decide how to dispose of their assets in England and Wales, there are limits to this freedom, including where a beneficiary of the estate is made bankrupt. If the testator passes away during the course of the beneficiary’s bankruptcy, the legacy will usually pass to the trustee in bankruptcy for the benefit of creditors instead of to the beneficiary.
The government has introduced two separate pieces of legislation aimed at redressing the abuse of “killing off” companies to escape liabilities. One recently came into force, the other is currently before parliament.
Whether the claimant or defendant, successful parties to civil litigation can be disappointed to hear that they are highly unlikely to recover all of their legal spend. The losing party is only required to pay what is considered reasonable and proportionate. A key feature in what is recovered is the reasonableness of the hourly rates charged by the successful litigant’s solicitors.
A Civil Fraud quarterly round-up (2nd quarter 2021)
With charities under unprecedented media interest in recent years, the consequences of not dealing with reputation matters well are myriad. Negative press coverage threatens the faith that the public have in a charity which can result in a significant downturn in donations and affect recruitment and morale. Any charity’s reputation once damaged can be difficult to restore. The resources a charity must commit to responding to media enquiries and to any regulatory inquiry can be significant and is time spent away from pursuing the objectives of the charity.
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