# Mergers can cause major legal problems

- Link: https://fundraising.co.uk/2001/05/21/mergers-can-cause-major-legal-problems/
- Published: 2001-05-21T23:00:00+01:00
- Author: Howard Lake

Charities face major legal problems if they merge, according to a new study

A study by the University of Liverpool’s charity law unit has found that charity
mergers can produce considerable legal restraints upon charities’ functions. The
report _Legal Issues in Charity Mergers_ looked at 13 mergers involving 29 charities
and found two key problematic areas:first, restrictions on some charities’ assets
may stop them being used by the new merged entity. Secondly, different constitutions
can create difficulties in running the merged charity.

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