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CHARITIES ACT (NORTHERN IRELAND) 1964 - SECT 25

25.(1) The Court or the Ministry may by order make and bring into effect
schemes (in this section referred as "common investment schemes") for the
establishment of common investment funds under trusts which provide

(a)for property transferred to the fund by or on behalf of a charity
participating in the scheme to be invested under the control of trustees
appointed to manage the fund; and

(b)for the participating charities to be entitled (subject to the provisions
of the scheme) to the capital and income of the fund in shares determined by
reference to the amount or value of the property transferred to it by or on
behalf of each of them and to the value of the fund at the time of the
transfers.

(2) The Court or the Ministry may make a common investment scheme on the
application of any two or more charities.

(3) A common investment scheme may be made in terms admitting any charity to
participate or may restrict the right to participate in any manner.

(4) A common investment scheme may make provision for, and for all matters
connected with, the establishment, investment, management and winding up of
the common investment fund.

(5) A common investment scheme may in particular include provision

(a)for remunerating persons appointed trustees to hold or manage the fund or
any part of it, with or without provision authorising a person to receive the
remuneration notwithstanding that he is also a trustee of or for a
participating charity;

(b)for restricting the size of the fund;

(c)for regulating as to time, amount or otherwise the right to transfer
property to or withdraw it from the fund;

(d)for enabling sums to be advanced out of the fund by way of loan to a
participating charity pending the withdrawal of property from the fund by the
charity;

(e)for enabling income to be withheld from distributions with a view to
avoiding fluctuations in the amounts distributed, and generally for regulating
distributions of income;

(f)for enabling moneys to be borrowed temporarily for the purpose of meeting
payments to be made out of the fund;

(g)for enabling questions arising under the scheme as to the right of a
charity to participate, or as to the rights of participating charities, or as
to any other matter, to be conclusively determined by the decision of the
trustees managing the fund or in any other manner;

(h)for regulating the accounts and information to be supplied to participating
charities.

(6) A common investment scheme, in addition to the provision for property to
be transferred to the fund on the basis that the participating charity shall
be entitled to a share in the capital and income of the fund, may include
provision for enabling sums to be deposited by or on behalf of a charity on
the basis that (subject to the provisions of the scheme) the charity shall be
entitled to repayment of the sums deposited and to interest thereon at a rate
determined by or under the scheme.

(7) Where a common investment scheme makes any such provision as is authorised
by subsection (6), the scheme shall also provide for excluding from the amount
of capital and income to be shared between charities participating otherwise
than by way of deposit such amounts (not exceeding the amounts properly
attributable to the making of deposits) as are from time to time reasonably
required in respect of the liabilities of the fund for the repayment of
deposits and for the interest on deposits, including amounts required by way
of reserve.

(8) The Ministry may by a common investment scheme provide for investment of
any property belonging to a charity of which the Ministry is the trustee, and
the common investment fund established under this subsection shall be known as
the "central investment fund".

(9) The Ministry, on the application of a charity, may admit the charity to
participate in the central investment fund on such terms and subject to such
conditions as are specified in the scheme establishing that fund.

(10) The Ministry shall appoint a committee of persons who have special
experience of investment and finance or of the administration of trusts to
advise it with respect to the investment of the central investment fund.

(11) Except in so far as a common investment scheme provides to the contrary,
the rights under it of a participating charity shall not be capable of being
assigned or charged, nor shall any trustee or other person concerned in the
management of the common investment fund be required or entitled to take
account of any trust or other equity affecting a participating charity or its
property or rights.

(12) The powers of investment of every charity shall include power to
participate in common investment schemes, unless power to do so is excluded by
a provision in the trusts of the charity specifically referring to
common investment schemes.

(13) A body corporate in which a common investment fund is vested may, as
trustee of the fund, hold any estate in land, without restriction as to area,
notwithstanding anything contained in any enactment or in any instrument under
which it is incorporated.

(14) Notwithstanding that the assets comprised in a common investment fund
include any estate in land, a share in the capital and income of a fund shall
not be taken to be an estate in land.

(15) A common investment fund shall be deemed for all purposes to be a
charity.

(16) The persons managing a common investment fund shall not be treated for
the purposes of the Prevention of Fraud (Investments) Act (Northern Ireland)
1940 as carrying on the business of dealing in securities within the meaning
of that Act, nor shall section 13(1) of that Act (restriction on the
circulation of circulars relating to investments) prohibit the distribution or
possession of any document by reason only that it contains an invitation or
information relating to a common investment fund.

(17) Subsections (15) and (16) shall apply not only to common investment funds
established under the powers conferred by this section but also to any similar
fund established for the exclusive benefit of charities by or under any
enactment relating to any particular charities or class of charity.

Power of two-thirds of trustees to act for certain purposes.

© 1964 Crown Copyright

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