Lehtimäki v Cooper: Duty and Jurisdiction in Charity Law

Abstract

Lehtimäki v Cooper is a significant Supreme Court decision which establishes that the members of charitable companies are in a fiduciary relationship with respect to the purposes of their organisation. Its core principles have the potential to impact on a very large number of people in the voluntary sector. This note critically assesses the nature and scope of the new fiduciary relationship. In the light of the fact that the majority of new charities are founded as charitable incorporated organisations, the note also criticises the narrow focus on charitable companies taken in the case. Finally, it analyses the expansion in jurisdiction in the decision. The case is notable for bringing companies within the courts’ traditional, and powerful, jurisdiction over trusts.

Keywords: Lehtimäki, cooper, charity law, equity, trusts, fiduciary obligations