Hampshire: Charity trustees face enquiry after £15m property profit, reports Shentons

Winchester law firm Shentons has issued a warning to charity trustees to be mindful of their obligations in dealing with the assets they control, following recent comments from the Charity Commission. 

The trustees of a charity that sold a building for £6 million are to face an enquiry from the Commission after it was discovered that the property (sold to a company registered in the British Virgin Islands) was then sold for £21 million by its new owners.

The Commission is understandably concerned that the property may have been sold for significantly less than its true market value and has ordered an investigation to find out whether there has been mismanagement or misconduct on the part of the trustees.

Shentons partner Robert Kerr commented: "Although this probe is at an early stage, the fact that the Commission has issued a press release to highlight that it is taking place should act as a reminder to charity trustees of their obligations. Such press releases are issued when the Commission considers that it is in the public interest to do so."