The Scottish Government has launched a consultation on proposed changes to the SCIO Dissolution Regulations.

The consultation covers many of the recommendations made by the SCIO Dissolution Working Group in its report to Scottish Government in early 2020. The recommendations aim to maintain public confidence in the SCIO as a legal form by making improvements to the dissolution process that will:

• Introduce efficiencies to OSCR’s processing of dissolution applications
• Reduce the risk of the process not being followed through to its conclusion
• Add to the information and protection for creditors and other interest parties

The recommendations also propose a new power for OSCR to be able to remove defaulting and non-responding SCIOs, as well as those that do not meet the charity test and do not comply with our directions, without the need to apply to the court. This will enable OSCR to remove and dissolve SCIOs using processes aligned to those available for other charities under the amended 2005 Act.

Finally, the consultation addresses a proposal for the restoration to the Register of dissolved SCIOs for various reasons, including to allow claims to be brought against them by creditors or other interested parties.

The consultation runs until Thursday 11 September 2025.