We have been working with a number of our RP clients to ensure their constitutions remain fit for purpose.
In particular, we have been addressing issues linked to:
- Implementing new resident engagement models;
- Board tenure;
- Including additional flexibilities, particularly around virtual/hybrid meetings and serving notices electronically, following on from the provisions of the Corporate Insolvency and Governance Act 2020 ceasing to have effect; and
- Amending dissolution provisions for charitable community benefit societies (CBSs), following recent conversations with HMRC, to ensure these prevent assets being distributed to any entity which is not legally classed as a charity. While it is not mandatory for charitable RPs using the NHF Model Rules to change their dissolution clause, a number of RP CBSs are taking pre-emptive action ow in order to avoid any future difficulties in HMRC recognising them as a charity for tax purposes.