You Can't Do What You Want! UK Court Finds That Members Of A Charitable Corporation Are Fiduciaries Of The Charity

Presently in Canada, there are over 85,000 registered charities, most of which are set up as not-for-profit corporations. All of these corporations have members who regularly meet to elect directors, approve fundamental changes, and receive financial statements. When making these decisions, do members have a fiduciary duty to act in the best interest of the charity? Or, like a shareholder of a for-profit corporation, can they act in any way they want, even against the best interest of the charity? Surprisingly, until recently, this question had never been addressed by the courts. In The Children's Investment Fund Foundation v. A.G. et al. [2017] EWHC 1379 (Ch), the English High Court of Justice held that a member of a charitable corporation is a fiduciary of the charity and...