1. Exploring Academy Trust Structures Graham Burns, Partner 20 th June 2016 1

2. Overview Current education landscape Conversion Process Multi academy trust (MAT) structure Funding and Land Agreements Preservation of Religious Character MAT Governance Key benefits of the MAT model 2

3. Current Education Landscape Academies Act 2010 – introduced academy conversions Independent schools run by an “Academy Trust”, a company limited by guarantee and an exempt charity Education and Adoption Act 2016 – Extended powers of RSCs and enabling intervention in coasting schools March 2016 – new White Paper: all schools to be academies? Impact – more academies and greater need for collaboration 3

4. Academy Conversion – The Process Academy Order and Public Consultation Establish the Academy Trust Agree the Funding Agreement with the DfE Transfer Staff: TUPE process Commercial Transfer Agreement for contracts and non-land assets Pensions Timescale: The DfE estimates that the process for converting into an academy should take five months to complete, with an extra month for projects involving PFI contracts. 4

5. MAT Legal Structure One or more academies operated by a company limited by guarantee (MAT). MAT has exempt charity status. Each academy under the MAT is an independent school. MAT consists of Members and Trustees. Trustees may be referred to as “directors” (as the MAT is a company). The Trustees may also choose to appoint Local Governing Bodies (LGBs) for each of the schools. A LGB is a committee and may be delegated powers by the Trustees. 5 5

6. MAT Legal Structure One company operating one or more academies One master funding agreement and a separate supplemental funding agreement for each academy Multi Academy Trust Academy 1 DfE 1 Master Funding Agreement Academy 2 Academy 3Academy 4 X Supplemental Funding Agreements (1 for each academy) 1 Company operating multiple academies 6

7. Funding Agreements Multi Academy Trust Secretary of State 1 MFA An SFA for each school in the MAT 7

8. Land Arrangements General principle of Status Quo – land remains as is Land held by foundation body can remain with foundation body Foundation body enters into supplemental agreement with DFE 8

9. Preservation of Religious Character General principle of Status Quo - school retains religious designation Ethos and promotion of Jewish education preserved in Articles Further protections contained within supplemental agreement and relevant funding agreement. Prospect for schools within MATs to retain unique ethos – with appropriate protections. 9

10. MAT Governance Members Trustees Provide a £10 guarantee on winding up Power to change the Articles and company name Power to appoint Trustees (under Articles) and remove Trustees (under Companies Act) DfE Policy - “Degree of separation” between Members and Trustees Responsible for the management of the MAT Trustee composition – Member appointed Trustees and may also include - CEO, co-opted, staff and parents (no requirement for parents if 2 elected parents on each LGB). 10

11. MAT Governance LGBs & Committees Trustees can appoint LGBs (not required to contain a majority of Trustees). Minimum of 2 elected parents on each LGB. Trustees can appoint other committees (must contain a majority of Trustees). A separate audit committee should be established for a MAT (must be established if over financial threshold). Terms of reference for LGBs & committees determined by the Trustees. 11

12. MAT Governance Structure Members (5) School 1 Local Governing Body (7 – 10) School 2 LGB (7 – 10) School 3 LGB (7 – 10) Trust Board (9 – 12) School 4 LGB (7 – 10) Conventional composition of LGBs: Staff Governors Parent Governors Community Governors Headteacher

13. Key benefits of the MAT model The MAT model allows schools to capitalise on benefits including: Sharing best practice Economic benefits, such as centralised services Ability to focus funds where they are most needed Increased and flexible staffing resources Can remain local, but also grow and expand, and support a wider network of schools 13

14. Stone King – Contact Details Graham Burns Partner 020 7324 1760 07786 268581 gb@stoneking.co.uk If you have any questions, please do get in touch…. 14