Most ‘statutory requirements’ fall within legislation, and it is very important for any organisation, its decision-makers and its practitioners to comply with the law. The consequences of not doing so can be profound.

In the case of an ‘incorporated’ organisation, its assets will be used to meet all or part of any financial penalty, so that the organisation could be forced to fold. In an ‘unincorporated’ organisation, the individuals and not the organisation will be held legally liable (these might be the members of the Management Committee who made the decision or one or more individuals acting without their authority.

Not before time, there are now much more careful checks on how an organisation operates. Companies Limited by Guarantee already need to satisfy those at Companies House, but from 1st April 2006 registered charities will be forced to comply with the new Charities and Trustee Investment (Scotland) Act: recent scandals have helped to make funders, including statutory bodies such as local authorities, much more keen to ensure that organisations are carrying out their work properly.