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Charities And Trading Arms Warned

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The warning also covers trading subsidiaries owned by charities but managed separately. Even if a commercial partnership with an outside firms is made by the subsidiary rather than the charity directly, trustees must monitor them, it says.

Trustees “must be prepared to assert the rights of the parent charity as shareholder and must always put the interests of the parent charity first,” the guidance warns, adding: “The directors of the trading subsidiary are responsible for its management, but other major decisions are for the trustees, as representatives of the parent charity.”


A start.

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