Charity Governance

Charitable companies limited by guarantee

Academies are independent, state-funded schools. As charitable companies limited by guarantee (CLG), academy trusts are subject not only to education legislation but also to charity and company law. An academy can be a single academy trust (SAT) or a multi academy trust (MAT), comprising many schools.

The purpose of this guide is to outline the key issues for academies which arise when running a CLG. It describes the CLG structure and provides details of the legal framework that applies to it. As with other corporate structures, there are many pieces of legislation and regulation that apply to academy trust schools. Of particular note are the Companies Acts, Charities Acts, Department for Education (DfE) guidance and the Education and Skills Funding Agency (ESFA) documents, such as the funding agreement for each academy. These are the primary sources of authority that govern how an academy trust, as a CLG and exempt charity, is run. 

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