Can a Charity or Social Enterprise indemnify me as its trustee, officer or director?
If there is an indemnity clause in the constitution, a charity or social enterprise can indemnify its trustee, officer or director for liabilities incurred as a result of discharging their duties. In the case of a company, a director has a right to be indemnified by the company for all payments made in the proper execution of their powers. In the case of a Trust if there is no indemnity a trustee can apply to the court under the Trustee Act for the court to order the Trust to relieve them from liability if he or she has acted honestly and reasonably. This, of course, depends on the organisation having sufficient assets to meet the liability.
Related Questions
- Can a member of the Board of Directors of a charity make a loan to the charity for use in their social enterprise, and earn interest on the debt without triggering any CRA issues?
- Why is it important that an individual has cover after they have ceased to be a trustee, director or officer?
- What are the main liabilities of a Charity or Social Enterprise?
