Clause 5

by inserting, immediately after the word “charity” in subsection (2), the words “that is a registered charity or an exempt charity,”;

by deleting the words “such annual report shall have attached to it the statement of accounts” in subsection (3) and substituting the words “annual report of a registered charity or an exempt charity must have attached to it the financial statements”;

by deleting the words “on that statement of accounts or on that account and statement” in subsection (3)(a) and substituting the words “on the financial statements or account and statement”; and

by inserting, immediately after subsection (5), the following subsections:“(6) Subject to subsection (7), the governing board members of a charity must preserve every annual report prepared under this section for a financial year that ends on or after the date of commencement of section 5(d) of the Charities (Amendment) Act 2018 in respect of the charity, for at least 5 years after the end of the financial year of the charity to which the report relates.(7) Where a charity ceases to exist before the end of the minimum period in subsection (6) for preserving annual reports in respect of the charity —

the last governing board members of the charity; or

any one or more of the last governing board members of the charity, as may be agreed by the last governing board members,must preserve the annual reports to the end of that period, unless the Commissioner allows the annual reports to be earlier destroyed or otherwise disposed of.(8) Subsection (7) also applies to a charity that ceases to exist before the date of commencement of section 5(d) of the Charities (Amendment) Act 2018, if the minimum period in subsection (6) as it applies to any annual report of the charity has not ended on that date.”.