Legal
The happy medium
As fee-payers, parents are apt to find reasons for complaint, sometimes unreasonably so. That does not mean that schools should not take them seriously, however. John Deakin reports on the potential consequences
Since 2003, Regulation 7 to the Schedule of the Education (Independent School Standards) (England) or (Wales) Regulations 2003 has required independent schools to publish a written complaints procedure in a prescribed format setting out:
• an informal stage;
• a formal stage; and
• hearing of the complaint by a panel.
Public benefit pressure to ease for independent schools?
The new coalition government is reported to be talking to the Charity Commission about amending the public benefit requirements on independent schools
It is claimed that there will be a change in the apparent initial emphasis on providing more bursaries to pupils from poor families in favour of more community work and with collaborations with maintained schools, as previously revealed by Michael Gove MP in an exclusive interview with Funding for Independent Schools back in September 2009.
Altogether now?
Mergers and closures continue to feature in the sector. Emma-Jane Burnell examines the options
The independent schools sector has experienced increased numbers of closures and mergers of over the last few years. This has been exacerbated by the current economic climate and, in some areas, changes in demographics. But for many schools that are looking for a new strategic direction, this is not the only alternative.
The money funnel
Setting up a fundraising foundation can be key to boosting school funds. However, warns Chloe Brunton, care must be taken when doing so
There is a long history of schools establishing foundations to raise additional funds from current and former parents, pupils and staff. The funds raised are sometimes used for capital projects, and more commonly nowadays (not least in response to the test of public benefit) for means-tested bursaries.
Let the music play on
Music to whose ears? Phil Crier analyses the Government’s decision to remove charities’ music royalties exemption
The Government is removing the current exemption enjoyed by charities and non-profit organisations from the requirement to obtain a music licence from Phonographic Performance Limited (PPL) for playing copyright music to the public.
The staff of life
Discounts in school fees for staff bring many benefits (as well as disadvantages). However, there are also pitfalls to avoid if a school wants to drop or amend its scheme, writes Karl Deakin
Many independent schools offer some form of discount on school fees to staff. Most often this will be offered to teachers and senior executives at the school, although a number now choose to offer it to all staff. There is no doubt that the discount can act as a highly cost-effective aid to recruitment and retention of employees.
The third way
Schools are often the subject of litigation. Whether with personal injury claims or judicial review proceedings, litigation is distracting, time-consuming and a drain on schools’ limited resources, writes Peter Wake
Two sorts of claims have become increasingly prevalent recently: failure to educate and bullying claims. The former might be described as claims relating to a school’s alleged failure to address a pupil’s educational needs. The latter is typically an allegation that teachers have failed to take adequate steps to protect a pupil from bullying. To establish that a teacher has been professionally negligent is difficult and funding is not readily available.
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Shan't pay, won't pay…
Pursuing parents for unpaid fees can be a fraught process, reports Tabitha Cave
A N Parent says: "We do not consider that we are liable to pay fees in lieu of notice because the school breached the contract in failing to make Britney use a fountain pen at school, therefore depriving her of the opportunity to be national handwriting champion."
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Licence to lend
With some parents struggling to pay fees, is your school offering flexible fee payment options? David Emanuel and John Deakin explain the legal framework to do so and outline the risks of not conforming to it
In the current economic climate, both schools and parents are reviewing more flexible methods for payment of school fees during the school year to help with cashflow. However, care should be taken before agreeing deferred payment terms with parents.
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A licence to teach international students
Many independent schools are looking to international markets to increase their pupil numbers. Joy Hankins and Adrian Pashley report on the rules governing licences
Although many schools are aware that to teach pupils from overseas they must obtain a sponsor licence under the immigration rules, many schools are not actually up-to-speed with how to navigate the application process and are not fully aware of the obligations placed on their school once a licence has been granted.
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Trading places
Most independent schools undertake commercial activities to supplement their traditional income streams; now more than ever before are doing so. Doug Locke outlines the legalities of schools running trading companies
As financial pressures on parents increase, many schools are placing more emphasis on trading as a way of continuing to provide educational excellence, outstanding facilities and demonstrable public benefit while keeping fees affordable. However, charitable schools need to consider carefully how they structure non-primary purpose trading to avoid breaching charity law, paying unnecessary tax and putting governors at risk of personal liability. Central to these issues is the correct use of trading companies. This article covers those points, as well as giving advice on provisions to include in contracts with trading partners.
Parent power
How can you protect your school from actions led by parents? Anita Chopra explains how
Independent schools are finding themselves increasingly embroiled in battles with parents over the quality of education provided to their children, failure to comply with policies and procedures, and with debt recovery proceedings for non payment of school fees.
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Object lessons
Why should independent schools consider amending their objects? Ros Harwood explains
The public benefit guidance has caused independent schools to consider their charitable objects to decide whether:
• what their school is doing falls within their objects;
• the objects allow the school to do enough to fulfil the requirements; and
• the activities of the school can be counted in assessing the overall public benefit provided.
Beating the recession
As the credit crunch triggers a full-blown recession, there is real concern about the effects on the independent schools sector. Ben Brice reports on the options for struggling schools to survive the turmoil
It has been widely reported that independent schools are likely to face significant reductions in pupil numbers as their parents are no longer able to afford fees. The suggestion is that some schools are likely to face closure or seek a merger as the only viable way to stay in business. This threat is real, although it should only affect very few. For those that do find themselves in such a position, it is vital to keep a cool head when considering how the effects of the downturn should be managed.
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A licence to teach
In challenging economic times, many independent schools are looking at international markets to increase their pupil numbers. Joy Hankins and Adrian Pashley explain how to acquire the necessary licence
Although many schools are aware that in order to teach pupils from overseas they must obtain a sponsor licence under the immigration rules, our experience is that many schools are not up-to-speed with how to navigate the application process and are not fully aware of the obligations place on their school once a licence has been granted.
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Contract killers
Schools inevitably enter into a bewildering variety of agreements with suppliers. Doug Locke analyses the relevant issues to all contracts, with a particular focus on specific areas of concern to independent schools
Disputes with suppliers take time and money to resolve. Written contracts help to avoid most disputes by setting out clearly each side’s rights and responsibilities. They also protect the school if something goes wrong. Before entering into an important contract, it is necessary to carry out research into the supplier by speaking to trusted contacts in the sector. Only dealing with people with a good reputation will help to avoid disputes.
Companies Act 2006
How will the new Act affect school charities? By Robert Boyd
The Companies Act 2006 is a major piece of legislation that will affect all limited companies (whether commercial, charitable or trading subsidiaries) but will not apply to unincorporated trusts or to bodies incorporated by royal charter or by act of parliament, such as the Public Schools Act 1868.
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In good company
The Companies Act has ongoing repercussions for the effective management of independent schools. Nicola Evans sets out the main provisions relevant to incorporated schools and those with trading subsidiary companies
Among the wealth of legislation and regulation currently assaulting independent schools, those which are incorporated and/or which have trading subsidiary companies should follow the ongoing implementation of the Companies Act 2006 (the Act). The Act encompasses a major overhaul of company law and, at 1300 sections and 16 schedules, is the biggest Act ever passed by the UK Parliament. This may sound disheartening but the Act contains provisions which can help schools in their administration.
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International branding
An international reputation opens up opportunities for your school to extend the brand overseas. Doug Locke reviews the possibilities and cautions against the potential pitfalls to help protect your good name
International reputation is increasingly important to schools, both to attract pupils from overseas and to take advantage of the greater opportunities for licensing overseas schools.
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Intellectual pursuits
Intellectual property rights affect schools in many important ways. Doug Locke reviews the key areas
This article focuses on: websites and prospectuses; the protection of names and crests; licensing overseas schools; and combatting abusive websites.
Body-building
Increasing numbers of independent schools are becoming incorporated. Mairéad O’Reilly examines the advantages of incorporation as well as some of the key issues that school governors should consider
Incorporation involves the creation of a legal entity separate from the management and members of the organisation involved. The most common and often simplest mode of incorporation for schools is the formation of a company limited by guarantee, registered with the Companies Registry, Companies House. Other corporate forms exist but it is this type of incorporation that is reviewed here.
Scot free
The Charities and Trustee Investment (Scotland) Act has redefined some of the investment powers of Scottish charities. Simon Mackintosh outlines the new opportunities and responsibilities for independent schools
Scottish charities – and particularly independent schools – might be forgiven for thinking that the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act) is all about regulation and definition.
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The Rolling Review in Scotland
Scottish independent schools are considering how to react to the new public benefit tests contained in its charity legislation, writes Simon Mackintosh
While England awaits guidance from the Charity Commission, Scotland already has some useful material to work with. We have a statutory test in the Charities and Trustee Investment (Scotland) Act 2005; and in the pilot studies for the Rolling Review by The Office of the Scottish Charity Regulator (OSCR) which give the first signs of some clear guidance as to how this test will be interpreted.
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