Charities Act 1994 · 2020 Revised Edition · Part 7 · Application of Property Cy-Près and Assistance and Supervision of Charities by Court and Commissioner
34. Power to relieve governing board members, etc., from personal liability
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If in any proceedings for negligence, default, breach of duty or breach of trust against a person to whom this section applies, whether appointed by the court or otherwise, it appears to the court before which the proceedings are taken that —
the person is or may be liable in respect thereof; but(b)the person has acted honestly and reasonably and, having regard to all the circumstances of the case, the person ought fairly to be excused for the negligence, default or breach,the court may relieve the person either wholly or partly from the person’s liability on such terms as the court thinks fit.
Where any person to whom this section applies has reason to apprehend that any claim will or might be made against the person in respect of any negligence, default, breach of duty or breach of trust, the person may apply to the General Division of the High Court for relief, and the General Division of the High Court has the same power to relieve the person as it would have had, under subsection (1), if it had been a court before which proceedings against the person for negligence, default, breach of duty or breach of trust had been brought.
Without limiting subsection (1), the circumstances of the case referred to in subsection (1) may include the circumstances connected with the appointment of the person.
To avoid doubt and without limiting subsection (1), “liability” includes the liability of a person to whom this section applies to account for profits made or received.
The persons to whom this section applies are —
governing board members or trustees for charities; and
receivers and managers in respect of the property and affairs of a charity (whether appointed under this Act or otherwise).[32A