The Charity Commission has opened a statutory inquiry into The Brighton and Hove Heritage Commission.
The charity was registered in 2021 with objects that include preserving the historical and architectural heritage of the city of Brighton and Hove.
The regulator first engaged with the charity in June 2024 following concerns raised about alleged financial misappropriation and poor financial controls within the charity.
During the course of the Commission's engagement, a former trustee died, leaving the charity with a potential legacy. There has been an escalating dispute between individuals involved in the charity, including over the administration of the charity and the handling of the potential legacy due to the charity.
The Commission identified that the charity's governing document contains irreconcilable and contradictory provisions as to how trustees are appointed. The regulator has encouraged parties to the dispute to work together to apply to the Commission for a Scheme to amend the governing document and then follow the agreed process for appointing valid trustees to take forward the management of the charity.
However, mediation has not taken place, and various attempts by parties to the dispute to seek solutions have failed.
During the course of the Commission's engagement, one party to the dispute also raised new, additional allegations about the potential misappropriation of funds.
The Commission's inquiry will now examine whether the trustees are complying with their legal duties and responsibilities in respect of the administration, governance and management of the Charity in particular with regard to:
whether the governing document is fit for purpose; and
whether any failings or weaknesses identified in the administration of the Charity are a result of misconduct and/or mismanagement by its trustees.
The Commission may extend the scope of the inquiry if additional regulatory issues emerge.
As part of its inquiry, and to protect the charity's assets, the Commission has used its powers under s.76(3)(d) of the Charities Act to temporarily freeze the charity's bank accounts.
It is the Commission's policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry's outcomes.
