The Royal Albert Hall has referred to the Charity Tribunal due to conflict of interest in his advice.
The Charity Commission, said seats given to families that funded the hall’s construction in the 1860s were sold for considerable profit.
He said that as seat holders hold a majority in the council room of government, it poses “an inherent unresolvable conflict of interest.”
A spokesman for the hall said she was disappointed by the decision.
A spokesman for the Charity Commission, said: “The question is whether these agreements enable the council to be perceived as the promotion of the purposes of the organization for the benefit of the public.
“We have been committed to the room for some time and, although progress has been made in some areas, the central question of how to deal with conflicts of interest, and suggested private benefit, remain unresolved and the room has been shown to a minimum of appetite to address these.
“Due to the complex nature of these issues, we have obtained the consent of the Attorney-General to refer to a series of questions to the Charity Tribunal.”
A spokesman for the Royal Albert Hall said: “We are disappointed to hear that the Charity Commission has taken this route.
“Over many years, the chamber has engaged in a significant way to resolving what is a complex set of issues, however, the commission has decided to refuse to meet with us, while the search for what has been a costly and time-consuming route.
“While we, of course, cooperate with this process, our attention will focus on entertaining audiences and to improve our considerable charitable activities.”