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High Court Partially Overturns Kids Company Mismanagement Report

Judge rules key criticisms in Charity Commission’s 2022 inquiry as irrational, while upholding broader findings of financial mismanagement.

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Overview

  • Mr Justice Sheldon deemed two paragraphs of the Charity Commission's 2022 report on Kids Company as irrational and unfair, requiring revisions.
  • The court found innuendo regarding payments to the charity's 'top 25' beneficiaries and critiques of low reserve levels to be unjustified.
  • The broader findings of financial mismanagement and the charity's high-risk operating model were upheld as reasonable and evidence-based.
  • Michael-Karim Kerman, continuing the legal challenge initiated by late founder Camila Batmanghelidjh, expressed vindication over the ruling.
  • The Charity Commission acknowledged the errors and committed to amending the report while defending its overall conclusions as sound.