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Version status: Not yet in force | Document consolidation status: Updated to reflect all known changes
Version date: 28 February 2009 - onwards

89. Permission to enter into certain agreements with charity trustees or connected persons.

(1) A charitable organisation may enter into an agreement (in this section referred to as an "agreement") with a relevant person for the provision by the relevant person of a service to, or on behalf of, the charitable organisation in consideration of the payment to the relevant person out of the property of the charitable organisation of such sum or sums as may be specified in the agreement or as may be determined in accordance with the agreement.

(2) An agreement shall be in writing.

(3) Any sum or sums payable to a relevant person under an agreement shall not exceed what is reasonable and proportionate having regard to the service provided by the relevant person pursuant to the agreement.

(4) Subject to subsection (5), a charitable organisation shall not enter into an agreement unless the charity trustees of the charitable organisation, other than any charity trustee who -

(a) will provide a service under the agreement,

(b) provides a service under an agreement other than the agreement referred to in paragraph (a),