Not for profit work organization

[demps]

Hi, I work for a not for profit organization, in the last year we have had our workforce reduced by 2, and 2 members of staff have gone part time. We were told about 6 months ago that these measures were necessary as takings were down. We have just found out that our directors (of which there are 2) awarded themselves over £400,000 in 2 years as back pay as they were not being paid enough. This they have admitted to us when a member of staff requested the details of our company from companies house. We are back up to taking the same amount of money as we were last year, albeit with less and reduced staff hours, this has caused a detrimental effect on the rest of the staff, who are finding the stress of doing more work very difficult, and also feel the running of the company is not right. Could anyone tell us the best way to approach this situation, I am thinking Acas. Also we want to join a union, would this be possible as we are non profit org. We do not have any trustees and the 2 directors have to answer too no one. Thank in advance for any help.

[MissFM]

Re: Not for profit work organization

Hi Demps and a warm welcome to Legal Beagles

I'm appalled by this but can't readily find how these companies (in particular) are regulated. Hope someone here will know, meanwhile will do some research.

I'd've thought HMRC might have a view on why directors of a non-profit company are awarding themselves such stratospheric salaries.:tinysmile_hmm_t2:

[enquirer]

Re: Not for profit work organization

... a not for profit organization, [...] our directors (of which there are 2) awarded themselves over £400,000 in 2 years ...

It sounds like they are removing assets prior to crashing the company.

Is it also a registered charity? If so, what are its charitable aims? What is the business of the company (see the Articles of Association)? Who are the shareholders?

[wales01man]

Re: Not for profit work organization

Read what some Charity CEOs take in salary their underpayment might be about right?

[MissFM]

Re: Not for profit work organization

Read what some Charity CEOs take in salary their underpayment might be about right?

I truly hope you mean that ironically Wales ..x

[demps]

Re: Not for profit work organization

Thank you for your reply.

[demps]

Re: Not for profit work organization

Yes wales01man, I have seen the amounts directors are paid. and it looks to be about right. But is it right for them to cut hours and staff and expect us to attain the same targets? Thank you for your reply

[demps]

Re: Not for profit work organization

I was thinking the same about crashing the company. It is not classed as a charity, its a not for profit company, Im not sure what the difference is. Its a recycling company, we pick up any items, or they are donated, we clean, restore etc and sell in a shop. We have a discount for oap's, people on benifits and students. We work with dhss when someone needs a house furnished etc. As far as I know there are no shareholders. Could I also ask, if there are directors of a company should there be board meetings? and who should attend them? Thanks in advance.

[wales01man]

Re: Not for profit work organization

Directors attend board meetings how many and when is for them to decide

[bluebottle]

Re: Not for profit work organization

Is the business a Community Interest Company, or a Community Interest Organisation or a Company Limited by Guarantee? Not-for-Profit companies are regulated by the Charity Commission and the BIS. The Charity Commission is, probably, the best people to speak to about your concerns. Their number is 0845 3000218.

[enquirer]

Re: Not for profit work organization

Its a recycling company, we pick up any items, or they are donated, we clean, restore etc and sell in a shop. We have a discount for oap's, people on benifits and students. We work with dhss when someone needs a house furnished etc.

Ah ... one of those.

As far as I know there are no shareholders.

There ought to be, even if the issued share capital is a single £1 share.

Could I also ask, if there are directors of a company should there be board meetings? and who should attend them?

Normally there are board meetings. Usually only the Directors ('the Board'), can attend. The AGM is another matter, but that won't be of any use to you as you are not a shareholder.

[wales01man]

Re: Not for profit work organization

The directors are probably the shareholders

[labman]

Re: Not for profit work organization

Have a read of this:

http://www.resourcecentre.org.uk/inf...organisations/

[bluebottle]

Re: Not for profit work organization

Ah ... one of those.


There ought to be, even if the issued share capital is a single £1 share.


Normally there are board meetings. Usually only the Directors ('the Board'), can attend. The AGM is another matter, but that won't be of any use to you as you are not a shareholder.

Usually, with Companies Limited by Guarantee, the members are the shareholders and their liability, in the event of things going mammaries skywards, is £1.05 per member. Any such company that has no member-shareholders and/or seeks to remove the voting rights of the members should be investigated by the Charity Commission.

[labman]

Re: Not for profit work organization

See Post 13.