Pre-school closures and mergers | Oxfordshire County Council

Pre-school closures and mergers

Outlining the steps pre-schools should take to close or merge.

Governing document

All charitable organisations have a governing document. This will be in the form of a constitution or articles of association.

It will contain:

  • A dissolution clause
  • A membership clause
  • Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) clauses

You will need to work in accordance with these clauses when closing or merging your setting.

Process for closure

  • Discuss proposal at a committee level.
  • If the committee decide to go ahead a preliminary EGM must be called and a vote on dissolution will need to take place. This must be in line with the dissolution clause in your governing document.
  • Seek legal advice, for instance on whether you need to make redundancy payments to staff.
  • Inform staff of plans.
  • Inform parents of closure date.

Other considerations

  • Transfer of assets:
    • Approval needed from PLA if you’re using their model constitution.
    • Approval may be needed from others, for example the Charities Commission.
  • Have you paid off all debts? You need to be solvent when closing the charity.
  • You’ll need to produce final accounts and officially close the charity.

Process for merger with a school

  • Discuss proposal at a committee level.
  • If the committee decide to go ahead a preliminary EGM must be called.
  • Inform staff of plans.
  • The school should attend the preliminary EGM and present its plans post-merger. This should include opening times, fee structure and staffing structure
  • Seek permission from the Pre-school Learning Alliance (PLA) and/or Charity Commission for merger.
  • Call a dissolution EGM.

Other considerations

  • Staff will be subject to TUPE legislation. Advice should be sought from your employee liability insurance company. A letter will need to be sent to all staff.
  • Transfer of assets:
    • Approval needed from PLA if you’re using their model constitution
    • Approval may be needed from others, for example the Charities Commission.
  • All debts will need to be paid before the date of merger.
  • You’ll need to produce final accounts and officially close the charity.

Useful documents

Advice

Further advice is available from the Pre-school Learning Alliance.

Last reviewed
10 May 2017
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