Setchim & Anor v Secretary of State for Foreign & Commonwealth Affairs & Ors [2014] EWHC 2218 (Ch) (04 July 2014)

Setchim & Anor v Secretary of State for Foreign & Commonwealth Affairs & Ors [2014] EWHC 2218 (Ch) (04 July 2014)

The proceeds of sale of the Kensington Building are held absolutely by CIC and not subject to any special trusts or interests under section 2(4) of the 1925 Act, due to valid transfer and repeal of relevant statutes. No enforceable contractual rights exist for compensation for associated entitlements; the unspent amount is repayable to the Secretary of State under the Severance Agreement. Assets may be transferred to CET in accordance with CIC's charitable objects.

Citation
[2014] EWHC 2218 (Ch)
Parties
Applicant: Richard Setchim; Applicant: Ian Oakley Smith; Interested Party: The Secretary of State for Foreign and Commonwealth Affairs; Interested Party: The Attorney General; Interested Party: The Charity Commission; Interested Party: The Trustees of the Commonwealth Education Trust
Jurisdiction
England and Wales
Judgment Date
04 July 2014
Procedural Posture
Companies Court Application Under Insolvency Act 1986 / Final Judgment on Liquidators' Application for Directions
Outcome
Application granted in part; declarations and directions issued.
Legal Topics
Distribution of Surplus Assets on Winding Up, Cy Près Jurisdiction, Charitable Trusts, Contractual Rights Against Government, Transfer of Assets Between Charities
Charity Law Company Law Insolvency Law Trusts Law Contract Law Distribution of Surplus Assets on Winding Up Cy Près Jurisdiction Charitable Trusts +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Richard Setchim

Applicant

Ian Oakley Smith

Applicant

The Secretary of State for Foreign and Commonwealth Affairs

Interested Party

The Attorney General

Interested Party

The Charity Commission

Interested Party

The Trustees of the Commonwealth Education Trust

Interested Party

Procedural Posture

Companies Court Application Under Insolvency Act 1986 / Final Judgment on Liquidators' Application for Directions

Legal Issues

  1. 1 Whether proceeds of sale of Kensington Building are held absolutely by CIC or subject to special trusts under section 2(4) of the 1925 Act
  2. 2 Whether court should exercise cy-près jurisdiction to direct transfer of assets to CET
  3. 3 Whether CIC has enforceable contractual rights to compensation for loss of associated entitlements

Ratio Decidendi

The proceeds of sale of the Kensington Building are held absolutely by CIC and not subject to any special trusts or interests under section 2(4) of the 1925 Act, due to valid transfer and repeal of relevant statutes. No enforceable contractual rights exist for compensation for associated entitlements; the unspent amount is repayable to the Secretary of State under the Severance Agreement. Assets may be transferred to CET in accordance with CIC's charitable objects.

Court Disposition

Application granted in part; declarations and directions issued.

Orders

  • Declaration that proceeds of sale of Kensington Building are held absolutely by CIC and not subject to special trusts under section 2(4) of the 1925 Act.
  • Direction that assets may be transferred to CET in accordance with CIC's charitable objects.