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A few initial thoughts on Kids Company 
It has been over 5 years since Kids Company entered into insolvency. After a 3 year legal case, today the court dismissed claims by the official receiver that the CEO and 7 former trustees failed to properly manage the charity. 1/6
It has been over 5 years since Kids Company entered into insolvency. After a 3 year legal case, today the court dismissed claims by the official receiver that the CEO and 7 former trustees failed to properly manage the charity. 1/6
The unprecedented case focused on alleged financial mismanagement in the months leading up to the insolvency and could have resulted in a 15 year directors ban. Instead, the trustees and former CEO have been exonerated. 2/6
It’s clear the profile & media attention have made it hard to follow this objectively. It is worth reflecting though on what an alternative ruling would have meant. The message it would have sent to people considering trustee roles and for charity CEO’s who advise boards. 3/6
There will no doubt be lots of time to get into the specifics but from a governance perspective my initial thought is that trustees can take some reassurance: 4/6
First that if they do their best to comply with their duties, committing their skill and energy to run charity, acting honestly and in good faith, then the law generally protects them against such cases. 5/6
Second the ruling makes clear that in her capacity as CEO Batmanghelidjh was not a 'de facto director'. Meaning there are no significant implications for the division of executive and non-executive responsibilities. 6/6
