This Report, issued in March 2003, completes the Commission’s project on the personal liability of board members in the not-for-profit sector. A consultation paper issued in July 2001 was the basis for consultations with the sector, the bar, and regulators. The report proposed significant limitation on the personal liability of directors and officers of volunteer organizations, which have not been adopted in substance in The Non-Profit Corporations Act.
A sector governed by volunteers needs protection, both for the volunteers and for the public. Safeguarding the public is paramount, but personal liability should not deter volunteers from seeking board membership in non-profit organizations. Recommendations include restricting personal liability, immunity for directors and officers, and reasonable restriction of that immunity to avoid gross misuse.