An actors’ charity appears to be in the bad books of the regulator over the amount of time and money spent to resolve a “bitter dispute” between trustees.
The Charity Commission has ordered the Actors’ Benevolent Fund to hold fresh elections for trustees before the end of the year, following a year-long investigation.
It also told the charity to resolve the stand-off, which arose after a series of claims that previous trustees had been ousted from their positions and blocked from seeing the charity’s financial documents.
The drawn-out saga saw the regulator get involved to investigate the legality of the actions taken by ABF – and to attempt to mediate between the two sides.
Third Sector understands there is frustration behind the scenes at the commission over the public resources spent to help the actors to resolve difficulties which one source called “avoidable”.
The commission said today it had identified “a breach in the process” during board elections last year but said it had decided to appoint the trustees who won the most votes that day.
That means that some household veteran names from screen and stage who lost their roles at the ABF, such as Penelope Keith and James Bolam, have not been restored to their positions.
The trustees must now arrange an annual general meeting before the end of December so that a new board can be elected, the regulator said.
The charity said today that the decision would allow it to continue its work after “the failings” of previous leadership.
A commission spokesperson said that the dispute “has not served the interests of the charity’s members or beneficiaries and has been harmful to the charity’s reputation and its ability to operate effectively”.
The ABF holds an endowment worth £30m and makes payments to actors and other arts professionals who face financial hardship.
The ousted trustees said last year that they wanted to see the situation addressed so that the charity could focus “on its true purpose: supporting our beneficiaries for whom the ABF is an essential lifeline”.
The Charity Commission said today: “Through our investigations we have concluded that, while there was a breach in the process of the trustee election held at the charity’s AGM in December 2022, those who received the most votes should now be appointed as trustees.
“The breach we identified was a decision to close, rather than adjourn, the charity’s 2022 AGM.
“To allow the charity to operate, we have therefore used our powers to appoint as trustees those individuals who received the most votes from the membership.
“However, we have directed the charity and its trustees to hold another AGM by no later than December 2023 to give the members another opportunity to have their democratic say on the charity’s leadership.
“This will allow the charity to draw a line under the dispute and ensure the trustees can focus their energies on furthering the charity’s purposes.
“We hope and expect all parties to this dispute to move forward together in the interests of the charity and its beneficiaries.”
The ABF trustees told Third Sector: “The ABF is being reformed with the aim of making it able to provide help to many more actors and stage managers who are experiencing financial, health and wellness difficulties.
“Since last spring, the trustees have been working to implement a Charity Commission action plan which was imposed because of the failings of the fund’s previous leadership.
“The commission has been supportive of and positive about the progress we have made and we are very grateful for the advice and strategic direction they have provided.”
They added: “The ABF now has annual AGMs with trustee elections. Prior to the last AGM, the ABF had never had open elections nor allowed any member to stand freely to be a trustee.
“The trustees encourage anyone who could contribute as a trustee to consider involvement.
“This year the ABF has increased its grant budget by 30 per cent to £1.3m and is introducing new forms of support in areas such as mental health, counselling and short-term crisis support to help people get back to work.
“Work to modernise the charity and make it a more effective charitable citizen continues.”
A representative for the ousted trustees responded by accusing the commission of letting the new board “hijhack a £30m+ charity under their noses” and claimed the ABF had been “acting unlawfully” for a period when it operated without a board.