The Charity Commission has amended its controversial report into the running of defunct children’s charity Kids Company, following a High Court judgement that found parts of it were “unfair” and “one-sided”.

The regulator pledged to act earlier this week following the judgement into the report brought by the charity's former clinical director Michael-Karim Kerman.

My Justice Sheldon found that concerns raised in the 2022 report by the regulator into financial assistance made by the charity to beneficiaries, particularly those in need of the most support were "unbalanced and one sided” and “extremely unfair to the charity and the trustees”.

Despite his concerns he upheld the Commission’s finding of mismanagement of the charity’s finances and rejected concerns from the charity’s former trustees that the Commission’s findings were predetermined.

Three paragraphs have been amended, two relating payments to beneficiaries, another relating to its operating model and another has been removed.

The charity’s closure became the subject of a long running legal battle in recent years after the Official Receiver sought to disqualify Batmanghelidghj and the charity’s trustees from being company directors.

But despite being cleared by the High Court in 2021 , the Charity Commission’s report criticising the running of the charity was published a year later.

After the judgement the Charity Commission admitted that “we made important errors” in its report.

“The judgment notes we took care in the inquiry report to point out areas in which the charity’s trustees were acting within their duties and responsibilities, and where we found external criticism of the charity was unfounded,” added the regulator.

“Our inquiry report stated clearly there was ‘no dishonesty, bad faith or inappropriate personal gain in the operation of the charity’.”

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