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The paper trail

In order to ascertain whether a trust or body of persons is entitled to relief as being established for charitable purposes only, the relevant documents must be construed.

Where the body of persons seeking exemption is a limited company, the memorandum of association of the company must be worded so as to determine whether it is established for charitable purposes only. The court is not concerned with the ultimate aims of the founders but solely with the meaning and effect of the language employed in the memorandum¹, and neither the documents preliminary to the incorporation of the company, nor the actions of the directors after the company has been formed, can properly be received in evidence for the purpose of determining what the rights of the company may be².

These same principles apply equally to trust deeds³. Extrinsic evidence may, however, be given to establish that a body of persons has purposes other than those set out in its written objects⁴.

Ancillary objects

If