Company registration number: 09102473 Charity registration number: 1158803
MIT Foundation (UK) Limited
(A company limited by share capital) Annual Report and Financial Statements
for the Year Ended 30 June 2024
SKS Audit LLP Chartered Accountant 3 Sheen Rd Richmond TW9 1AD
MIT Foundation (UK) Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner' Report | 5 to 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Statement of Cash Flows | 9 |
| Notes to the Financial Statements | 10 to 16 |
MIT Foundation (UK) Limited
| Reference and Administrative Details | |
|---|---|
| Trustees | K Hammer |
| R Rishani | |
| C Norris (resigned on 22 September 2023) | |
| J Dodds (appointed on 11 October 2023) | |
| Secretary | E Flood |
| Principal Office | 19 Norcott Road |
| London | |
| N16 7EJ | |
| Registered Office | 19 Norcott Road |
| London | |
| N16 7EJ | |
| Company Registration Number | 9102473 |
| Charity Registration Number | 1158803 |
| Independent Examiner | SKS Audit LLP |
| 3 Sheen Rd | |
| Richmond | |
| TW9 1AD |
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MIT Foundation (UK) Limited
DIRECTORS' AND TRUSTEES' REPORT FOR THE YEAR ENDED 30 June 2024
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 June 2024.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Objects of the charity, principal activities and organisation of our work
The MIT Foundation (UK) Limited was incorporated on 25 June 2014, registered as a charity on 7 October 2014, and commenced to operate on 7 October 2014.
The charity is incorporated and is constituted and governed by its memorandum and articles of association dated 25 June 2014.
The charity’s objects and its principal activities continue to be that of the advancement of education in particular by providing grants to Massachusetts Institute of Technology to assist in the advancement of students attending the institution.
Organisation
The Board of Trustees and Secretary are in regular contact and decisions are made by vote by the Trustees.
The Trustees elect new members as and when required. Any new appointments are at the unanimous recommendation of the board but after consultation with the ultimate controlling party, at least half the board members should be at such meeting.
Developments, activities and achievements
MIT Foundation (UK) Ltd has assisted Massachusetts Institute of Technology over the past year in various ways. It has done this through soliciting gifts from alumni, parents and friends, and has provided funding for student and faculty aid, capital renovations, and research. As the main source of philanthropy from constituents in the United Kingdom, the Foundation has played a vital role in helping to support MIT’s people and programmes. The Foundation is the lead source of support for the Institute in the United Kingdom.
Public benefit
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Future development
The future developments will be to continue to advance education by providing grants to Massachusetts Institute of Technology.
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MIT Foundation (UK) Limited
DIRECTORS' AND TRUSTEES' REPORT FOR THE YEAR ENDED 30 June 2024
Transactions and financial position
The Statement of Financial Activities show net income for the year of £7,960 (2023: net income of £3,181). Total reserves held at the year end were £14,020 (2023: £6,060).
Reserves policy
The Trustees have resolved to commit as much of the charity’s resources as possible to expenditure grants, whilst retaining modest reserves to meet day to day administrative costs as they fall due.
Risk review
The Trustees have conducted their own review of the major risks to which the charity is exposed and have concluded that the following systems that have been established provide reasonable but not absolute assurance that those risks are adequately managed:
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(i) The retention of a professional secretary to administer the foundation;
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(ii) The retention of a professional accounting firm with experience in the area to conduct an examination;
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(iii) The retention of a law firm with extensive experience in this area;
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(iv) The requirement that any transfer of funds by the foundation be approved by two authorised signatories; and
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(v) Final reconciliation by staff of Massachusetts Institute of Technology of MIT’s donative and accounting
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records with the financials of the Foundation.
Small company provision
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 11 March 2025 and signed on its behalf by:
.........................................
K Hammer Trustee
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MIT Foundation (UK) Limited
Statement of Trustees' Responsibilities
The trustees (who are also the directors of MIT Foundation (UK) Limited for the purpose of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP 2019 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and the financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
Approved by the trustees of the charity on 11 March 2025 and signed on its behalf by:
.........................................
K Hammer Trustee
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MIT Foundation (UK) Limited
Independent Examiner's Report to the Members of MIT Foundation (UK)
I report to the charity trustees (who are also Directors for the purpose of company law) on my examination of the accounts of the company for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.
This report is made solely to the charity's trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my Independent Examination, for this report, or for the opinions I have formed.
Respective responsibilities and basis of report
As the charity’s trustees (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).
Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act).
Independent examiner's statement
I have completed my examination. Since MIT Foundation (UK) Limited gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
• accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
• the accounts do not accord with such records; or
• the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
• the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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MIT Foundation (UK) Llmfited Independent ExAmlner's Report to the Members of MIT Foundatlon (UK) I have no Goncems and have Corne across no other matters in connection wth the examinatlon to which attentlon should be drawn in this report in order to enable a proper understanding of the accounts to be reach8d. narden Chelvanaigum FCCA For and on behalf of SKS Audit LLP Chartered Accountants 3 Sheen Rd Richrnond TW9 1AD Date: Page 6
MIT Foundation (UK) Limited
Statement of Financial Activities for the Year Ended 30 June 2024
(Incorporating Income and Expenditure Account)
| Note Income and Endowments from: Donations and legacies 2 Investments 3 Total Income and Endowments Expenditure on: Charitable activities 4 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 Note Income and Endowments from: Donations and legacies 2 Investments 3 Total Income and Endowments Expenditure on: Charitable activities 4 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 |
Unrestricted funds Total 2024 £ £ 405,348 405,348 167 167 405,515 405,515 (397,555) (397,555) (397,555) (397,555) 7,960 7,960 7,960 7,960 6,060 6,060 14,020 14,020 Unrestricted funds Total 2023 £ £ 5,434,381 5,434,381 78 78 5,434,459 5,434,459 (5,431,278) (5,431,278) (5,431,278) (5,431,278) 3,181 3,181 3,181 3,181 2,879 2,879 6,060 6,060 |
|---|---|
The Statement of Financial Activities also complies with the requirements of an income and expenditure account under the Companies Act 2006.
All amounts relate to continuing activities of the charitable company.
The Statement of Financial Activities includes all gains and losses recognised in the year.
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MIT Foundation (UK) Limited
(Registration number: 09102473)
Balance Sheet as at 30 June 2024
| Note Current assets Debtors 8 Cash at bank and in hand 9 Creditors: Amounts falling due within one year 10 Net assets Funds of the charity: Unrestricted income funds Called up share capital 11 Unrestricted 12 Total Unrestricted Fund Total funds |
2024 2023 £ 11,054 4,758 81,919 1,605,383 92,973 1,610,141 (78,952) (1,604,080) 14,021 6,061 1 1 14,020 6,060 14,021 6,061 14,021 6,061 £ |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2024.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2024 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies’ regime within part 15 of the Companies Act 2006.
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 11 March 2025 and signed on their behalf by:
Katherine R Hammer
.........................................
K Hammer Trustee
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MIT Foundation (UK) Limited
Statement of Cash Flows for the Year Ended 30 June 2024
| Note Cash flows from operating activities Net cash income Adjustments to cash flows from non-cash items Investment income 3 Working capital adjustments (Increase)/Decrease in debtors 8 (Decrease)/increase in creditors 10 Net cash flows from operating activities Cash flows from financing activities Investment income Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June |
2024 2023 £ £ 7,960 3,181 (167) (78) 7,793 3,103 (6,296) (4,694) (1,525,128) 1,600,761 (1,523,631) 1,599,170 167 78 (1,523,464) 1,599,248 1,605,383 6,135 81,919 1,605,383 |
|---|---|
All of the cash flows are derived from continuing operations during the above two periods.
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
1 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102) Revised), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
General information and basis of preparation
MIT Foundation (UK) Limited is a Charitable Company limited by share capital, incorporated in England. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are the advancement of education in particular by providing grants to Massachusetts Institute of Technology to assist in the advancement of students attending the institution.
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The Financial statements are presented in pound sterling, which is the functional currency of the Charity and rounded to the nearest £1.
Going concern
The Charity’s Financial Statements show total income of £405,515 (2023: £5,434,459) for the year and free reserves of £14,020 (2023: £6,060). The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements with respect to a period of at least one year from the date of approval of these financial statements including considering the impact of Ukraine crisis and Cost of living on the charity's income, expenditure and reserves; and its beneficiaries. They have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern and are fully engaged on a strategy to create a sustainable and resilient organisation during challenging times. The Charity continues to have financial support from its parent company (MIT International Inc. based in USA). Therefore, the trustees are of opinion that the financial statements for the year ended June 2024 can be prepared on a going concern basis.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognized when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognized until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Expenditure
All expenditure is recognized once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Investments
Investment includes interest on cash deposits.
Taxation
The charity is a registered charity and, therefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
Debtors
Other debtors are amounts due from HMRC in respect of gift aid due on donations.
Creditors
Other creditors include the amount payable to MIT International Inc.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Foreign Exchange
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Share Capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Judgment and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
- Allocation of shared cost between multiple activities: Support costs relate to those functions that assist the work of the charity but do not directly relate to charitable activities. Support costs include finance cost and governance costs which support the charity’s programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
2 Income from donations and legacies
| Donations and legacies; Donations to major appeals Other income from donations and legacies Gift aid reclaimed 3 Investment income Other investment income |
Unrestricted General £ 366,569 9,996 28,783 405,348 Unrestricted General £ 167 167 |
Total Total 2024 2023 £ £ 366,569 5,410,738 9,996 9,996 28,783 13,647 405,348 5,434,381 Total Total 2024 2023 £ £ 167 78 167 78 |
|---|---|---|
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
4 Expenditure on charitable activities
| Grant payments made to Massachusetts Institute of Technology |
Activity undertaken directly £ 403,403 |
Grant funding of activity £ (5,848) |
Total Total 2024 2023 £ £ 397,555 5,431,278 |
|---|---|---|---|
5 Analysis of governance and support costs
Raising funds expenditure
Support costs allocated to charitable activities
| Grant payments made to Massachusetts Institute of Technology |
Finance costs £ (13,864) |
Other support costs £ 8,016 |
Total Total 2024 2023 £ £ (5,848) 48,219 |
|---|---|---|---|
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
7 Independent Examiner’s Fees
| Independent Examination fees Audit of the financial statements All other non-audit services |
Total 2024 £ 1,560 - 1,080 2,640 |
Total 2023 £ - 2,250 1,080 |
|---|---|---|
| 3,330 |
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
| 8 Debtors Other debtors 9 Cash and cash equivalents Cash at bank 10 Creditors: amounts falling due within one year Other creditors Accruals 11 Share capital Allotted, called up and fully paid shares Share capital of £1 each |
Total 2024 £ 11,054 Total 2024 £ 81,919 Total 2024 £ 76,312 2,640 78,952 No 1 2024 |
Total 2023 £ 4,758 Total 2023 £ 1,605,383 Total 2023 £ 1,600,750 3,330 1,604,080 £ No £ 1 1 1 2023 |
|
|---|---|---|---|
| £ 1 |
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
12 Funds
| Unrestricted funds General Unrestricted funds General |
Balance at 1 July 2023 £ 6,060 |
Incoming resources £ 405,515 |
Resources Balance at 30 expended June 2024 £ £ (397,555) 14,020 Resources Balance at 30 expended June 2023 £ £ (5,431,278) 6,060 |
|---|---|---|---|
| Balance at 1 July 2022 £ 2,879 |
Incoming resources £ 5,434,459 |
13 Analysis of net assets between funds
| Current assets Current liabilities Total net assets Current assets Current liabilities Total net assets |
Unrestricted funds Total funds at General 30 June 2024 £ £ 92,973 92,973 (78,952) (78,952) 14,021 14,021 Unrestricted funds Total funds at General 30 June 2023 £ £ 1,610,141 1,610,141 (1,604,080) (1,604,080) 6,061 6,061 |
|---|---|
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MIT Foundation (UK) Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
14 Related party transactions
During the year the charity made the following related party transactions:
Massachusetts Institute of Technology
During the year ended 30 June 2024, Massachusetts Institute of Technology donated to MIT Foundation (UK) Limited £9,995 (2023 - £9,995). At the balance sheet date the amount due to/from Massachusetts Institute of Technology was £Nil (2023 - £Nil).
Ramzi Rishani (Trustee)
During the year ended 30 June 2024, Ramzi Rishani made a donation of £Nil to MIT Foundation (UK) Limited (2023 - £40,555).
15 Parent and ultimate parent undertaking
The company's immediate parent is MIT International Inc. however the foundation is controlled on a day to day basis by the Trustees who are all directors of the company.
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