Scrutinising the role of members in charitable companies: Lehtimäki and others v Cooper [2020] UKSC 33

Abstract

Abstract The law of charities is generally recognised as a branch of the law of trust but, nonetheless, has received special judicial treatment as distinguished from ordinary trust doctrines. In Lehtimäki and others v Cooper [2020] UKSC 33, interesting but difficult questions arose as to how the court should treat the members of charitable companies, and the decision made by the court has significant implications in charity law and trust law. First, the court has recognised the members as fiduciaries to charitable companies, but the boundary of the fiduciary duty needs further judicial clarification. Secondly, the court created an exception to the well-settled “non-intervention principle” in trust law but it calls for scrutiny. Lastly, Lehtimäki has an impact on the corporate governance of charitable companies, since it held that fiduciaries of charitable companies must obey an order made by the court which exercises a discretion of the trustees upon their surrender of discretion.