Academy Conversion – legal aspects Anthony Collins Solicitors

Conversion Process Schools register interest with DfE Application to Convert by schools & consultation. DfE Approval and Academy Order Consult – staff and other stakeholders Achieve Funding Agreement Pre-opening work

Legal Process Establish Academy Trust (single or multiple academy) Finalise Funding Agreement (single or multiple academy) Land transfer (freehold/leasehold) Staff & Assets transfer Who manages the process and communication?

Academy Trust M&As – governing document Powers to act & run school Governors as Members Role of Directors/Trustees/Governors Composition of new Governing Body & Local Authority association issue

Governors Role Current governor responsibilities arise from broad duties: Setting the strategic direction for the school Reviewing progress against budget, plans and policies Approving the school budget Providing support and challenge to the Headteacher – “critical friend” Appointing the Headteacher

Academy Governors Also company directors and charity trustees Duties under Company and Charity legislation Separation of Company –v- directors same as Governing Body –v- governors Not too onerous or different to being a governor – act in good faith and in best interests of school. Remember to take professional advice when necessary!

Directors’ Duties Companies House Admin – annual return, annual accounts, keep Companies House updated on changes of detail. Delegate? Act to promote success of business Act within the rules – internally through the constitution of company and externally through meeting all legal requirements. Be Honest Be diligent, careful and well informed re affairs of the company Keep good records of decision making Avoid conflicts of interest Seek external advice when necessary

Charity Trustee Duties Ensure Compliance – charity law, constitution and other legal requirements; act with integrity and avoid conflicts and misuse of funds/assets Duty of Prudence – keep charity solvent and keep upto date with charity situation; use funds and property wisely and solely for charity’s purposes; avoid undue risk especially around borrowing or investing Duty of Care – use reasonable care and skill to keep charity well run, take professional advice

Funding Agreement Purpose – regulation of Academy and provision of funding from DfE Covers funding available to academy trust and what is expected of it – admissions, exclusions, SEN plus operational issues re staffing, curriculum, termination, access to information Sources of funding – capital, GAG and EAG

Land Nature of transfer depends on school category Title reports and searches usually required and DfE interest in seeing reports What are the academy getting – agree plans and extent of site 125 year lease from Council to Academy Trust

Staff & Assets Staff transfer under TUPE – requires current employer consultation & no detriment on transfer terms Pensions continue – financial impact on Academy Trust Assets – transfer under “commercial transfer agreement”. Need to know what is transferring including contracts – audit?

Questions??? Richard Freeth Associate Anthony Collins Solicitors