Being a charity and a company all board members are fairly equal.
Not at the Fairfield… the ‘new boy’ Jon Rouse (Croydon Council CEO) formally joined the company board and within a week was not only interviewing for the new Fairfield Chief Executive but spent 20 minutes with each candidate before being interviewed.
Is this the end of the Independence of Fairfield?
- Fairfield has a short(ish) lease of only 60 years left.
- The landlord is Croydon Council.
- The Fairfield lease has a ‘rent clause’ in it that if enforced by Croydon Council would lead to closure.
- The Council ‘grants’ Fairfield £200,000 a year for ‘maintenance’ – it is understood that this money just about keeps up with legal requirements. Not a penny is spent on the Fairfield for proper investment in a building that is almost 50 years old.
- Given how dependent the Fairfield is on Croydon Council, (as landlord, funder and forgiver of rent) is it appropriate for the Council CEO to be appointing the CEO of the Fairfield?
- Who will the new Fairfield CEO respond to? a) the board b) Croydon Council
The Charity Commission has the following to say : (link)
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Nominated trustees can be a valuable asset for a charity because they can bring an outside viewpoint to the charity preventing a trustee body from becoming too inward-looking. However, nominated trustees will need to be aware that having two roles may bring conflicting demands, especially where the nominated trustee is also a member of the outside organisation that nominates him or her. For instance a trustee nominated by the local authority will need to recognise that the interests of the charity and its beneficiaries may not be the same as those of the local authority and its tax and rate payers. It is not the role of the nominated trustee to represent the interests of the organisation which nominated him or her. All trustees must act solely in the best interests of the charity.
Where a potential conflict of interest for a trustee arises on a particular issue, he or she should not take part in the discussions or vote on that issue. For example if you are a local councillor and also a trustee of a charity which is negotiating the sale of land to the local authority for development, you should not vote on the issue and should withdraw from any meeting at which the proposed sale is considered. You may also need to consider, with the charity’s legal advisers, whether on such a major issue we should be asked to authorise such a transaction. Without that authority, the presence on the trustee body of trustees with conflicts of interest may lead, in some circumstances, to the transaction being invalidated.
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Given the behaviour of the Council over the last few years (developing a scheme to renew the Fairfield and then cancelling it in 2007) and the Council proposing to employ more consultants to ‘look at the future’ of the Fairfield (yet again) and the Council CEO now directing the recruitment process for the new Fairfield CEO.
Are the trustees (individually and collectively) of the Fairfield Halls now able to act solely with the best interest of the Charity in mind?


