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F E Smith
F E Smith, Advocate
Category: Property Law
Satisfied Customers: 18744
Experience:  I have been practising for 30 years.
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A Mansfield allotments for the labouring poor trustee

Customer Question

A Mansfield allotments for the labouring poor trustee charity number 812191 wants to buy some allotment land that is up for sale but our governing document rule 16 states that "Trustees not to be personally interested - No trustee shall take or hold any interest in property belonging to the charity otherwise than as a trustee for the purpose thereof, and no trustee shall receive any remuneration at the cost of the charity"this I believe says he cannot buy the land as a trustee, how would you interpret it. Many thanks Rob
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: no I have not talked to anyone about it but I think it is wrong, I live in Mansfield, Nottingham and the allotment charity is in Mansfield could you perhaps point me in the right direction for advice on this please
JA: What steps have you taken so far?
Customer: I have emailed the person but as yet have not heard from him and with the present covid position no further committee meetings are planned
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I am a trustee and I think this has been manipulated over the months so he can buy the land which is adjacent to some land he already owns and which would greatly increase the value of his land
Submitted: 1 year ago.
Category: Property Law
Customer: replied 1 year ago.
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Expert:  F E Smith replied 1 year ago.

An unincorporated association cannot ownland because it is not an entity.

Therefore if the charity is an unincorporated association, it has to be in the name of Trustees.

What that says is that the trustee cannot buy land from the charity. Where it falls down of course is that he could retire as a trustee and then buy it.

If the charity wants to buy the land, then it can be purchased by the trustees on behalf of the charity or if the charity is a limited company it could buy the land in its own right or it could become a limited company and then by the land.

Can I clarify anything else for you?

I am happy to answer any specific points arising from this.

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FES