The Charity Commission has said it has “learned lessons” from its handling of a trustee dispute at an actors’ charity.

In concluding its investigation into the spat at the Actors’ Benevolent Fund, the regulator’s director of regulatory services Helen Earner said: “This has been a difficult time for all involved and we acknowledge some parties remain unhappy.

“We have ourselves learned lessons from this case and are already taking these forward in how we handle other cases where trustee appointment is disputed.

“We have also apologised for not including all past and present trustees in the early stages of our case, which was a fair challenge to our approach, but has not had a material impact on the overall outcome.” 

The case was opened two years ago into governance and financial controls at the charity following “a significant disagreement” among trustees, according to the regulator. The arguments focused on how trustees were appointed, removed or retired from the board.

During its probe the Commission used its legal powers to appoint temporary trustees based on votes during its 2022 annual general meeting.

The group of removed trustees included Dame Penelope Keith, who has received an apology from the regulator.

As part of its action in the case the regulator ordered the charity to hold a new election and “is now satisfied the charity's new board of trustees was appointed via a valid election” earlier this year.

The regulator also notes that the newly appointed board “endorses the need to draw a line under the disruptive period”.

The Commission’s investigation also found that the charity was operating “without sufficient financial policies” and had “an unclear” governing document “which ultimately contributed to the dispute”. This has since been updated.

“We encourage other charities to recognise the impact disagreements can have and take steps to avoid these situations,” added Earner.

“As regulator we cannot referee differences of opinion between trustees, but if necessary, we will step in and use our powers to appoint trustees, or assist a charity or its members to appoint trustees.

Former trustees 'disappointed'

In a statement the former trustees said that they were pleased that an apology had been given by the regulator to Keith “for their mishandling of this matter, which included its own mistreatment of her”.

But they are “disappointed” with the regulator’s public comments on the case, which they claim “seeks to underplay and devalue the rare apology by the Charity Commission”.

“It is entirely wrong to characterise this matter as a “disagreement” between factions of trustees,” they said.

They added: “Had the Charity Commission acted and engaged appropriately, which is their obligation, then this matter likely could have been resolved years ago.

“For the sake of the sector, the Charity Commission must always acknowledge their mistakes, publicly, and learn from them so that mishandling like this can never happen again.”

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