NEW RULES PROTECT VOLUNTEER BOARDS

Legislation introduced today will help protect people who serve as volunteer board members of non-profit corporations from personal liability for acts done in good faith.

The Non-profit Corporations Amendment Act, 2003, is based on a report recently released by the Law Reform Commission of Saskatchewan after extensive consultations with volunteer groups in the Province.

"This legislation will provide protection to the many individuals who devote their time and energy to perform valuable community service as directors and officers of non-profit corporations," Justice Minister Eric Cline said. "It also supports the work of the Premier's Voluntary Sector Initiative by helping to maintain a healthy non-profit sector in the Province."

The proposed changes provide that directors and officers of non-profit corporations will not be personally liable in any civil action for acts or omissions connected with their responsibilities to a non-profit corporation. However, the immunity will extend only to acts done in good faith, and will not extend to fraud or profit-taking at the expense of the corporation. Directors and officers of non-profit corporations remain liable for certain statutory liabilities, for example, unpaid tax remissions and unpaid wages.

Cline said the amendments strike a balance between the need for public accountability of non-profit corporations and their board members with the need to provide protection to board members of non-profit corporations.

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For More Information, Contact:

Debi McEwen Justice Regina Phone: (306)787-6043 Email: dmcewen@justice.gov.sk.ca