The Regulator for Charities in England and Wales


OPERATIONAL GUIDANCE

EXEMPT CHARITIES

HIGHER EDUCATION CORPORATIONS

OG 57 C2-01 March 2000

 


Divisional responsibility

For action:

Registration Division

For information:

Charity Support Division
Investigation Division


Contents

1. What are Higher Education Corporations
2. "Successor companies"

Meaning of expressions - list of Glossary terms used in this Guidance
Index to further related information

 

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1. What are Higher Education Corporations

 

Higher education corporations (HECs) are bodies corporate established to conduct certain former local authority maintained higher educational institutions. They are specified by Order of the Secretary of State. Many of the new universities, most of which were former polytehnics, were established following the Further and Higher Education Act 1992 and are HECs.

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Their powers are laid down in s.124 of the Education Reform Act 1988 and they are governed in accordance with articles of government made by the corporation with the approval of the Secretary of State (s.125 of the Act). The first HECs were established on 1 April 1989.

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HECs were formerly exempt charities under the provisions of paragraph (h) of Schedule 2 to the 1993 Act.

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They are now exempt charities by virtue of s.125A of the Education Reform Act 1988 as inserted by s. 41 of the Teaching and Higher Education Act 1998.

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So far as it is a charity, any institution which is:

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  • administered by or on behalf of any HEC; and

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  • established for the general purposes of, or for any special purpose of or in connection with, that corporation,

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will also be exempt.

 

The basic conditions that such an institution must satisfy are set out in OG 57 C1 section 2.2.

 

Some higher education institutions, (for example some religious colleges), which are not higher education corporations, may be charitable in their right and accordingly may be registered if they are established for exclusively charitable purposes.

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2. "Successor companies"

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Under s.128 of the Education Reform Act 1988, the Secretary of State may dissolve an HEC (see previous section) and a charitable company may be formed to take over its property, rights and liabilities. The new company is known as the "successor company".

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Under s.129(1)(b), the Secretary of State may make an Order designating the successor company as eligible to receive funding from a Higher Education Funding Council.

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Under paragraph (i) of Schedule 2 to the 1933 Act a designated successor company is an exempt charity.

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The following words and phrases are defined in the Glossary of Terms:

 

the 1993 Act


Go to: Index to further related information