CHARITIES ACT 1978 - SECT 2 Occasions for applying property cy près

CHARITIES ACT 1978 - SECT 2

    (1)     Subject to subsection (2), the circumstances in which the original purposes of a charitable gift can be altered to allow the property given or part of it to be applied cy près shall be as follows—

        (a)     where the original purposes, in whole or in part—

              (i)     have been as far as may be fulfilled; or

              (ii)     cannot be carried out, or not according to the directions given and to the spirit of the gift; or

        (b)     where the original purposes provide a use for part only of the property available by virtue of the gift; or

        (c)     where the property available by virtue of the gift and other property applicable for similar purposes can be more effectively used in conjunction, and to that end can suitably, regard being had to the spirit of the gift, be made applicable to common purposes; or

        (d)     where the original purposes were laid down by reference to an area which then was but has since ceased to be a unit for some other purpose, or by reference to a class of persons or to an area which has for any reason since ceased to be suitable, regard being had to the spirit of the gift, or to be practical in administering the gift; or

        (e)     where the original purposes, in whole or in part, have, since they were laid down—

              (i)     been adequately provided for by other means; or

              (ii)     ceased, as being useless or harmful to the community or for other reasons, to be in law charitable; or

              (iii)     ceased in any other way to provide a suitable and effective method of using the property available by virtue of the gift, regard being had to the spirit of the gift.

    (2)     Subsection (1) shall not affect the conditions which must be satisfied in order that property given for charitable purposes may be applied cy près, except in so far as those conditions require a failure of the original purposes.

S. 2(3) amended by No. 66/1998 s. 15(1).

    (3)     References in this section to the original purposes of a gift shall be construed, where the application of the property given has been altered or regulated by a scheme, by or under an Act or otherwise, as referring to the purposes for which the property is for the time being applicable.

    (4)     It is hereby declared that a trust for charitable purposes places a trustee under a duty, where the case permits and requires the property or some part of it to be applied cy près, to secure its effective use for charity by taking steps to enable it to be so applied.

S. 2(5) inserted by No. 66/1998 s. 15(2).

    (5)     This section applies to an alteration or regulation by or under an Act of the original purposes of a gift made before, on or after the commencement of section 15(1) of the Health Services (Further Amendment) Act 1998 .