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From: Elizabeth May Not a surprise, This is why SCC carries directors liability insurance, to portect our board members from personal loss. Elizabeth >----- Original Message ----- >From: Clean Annapolis River Project <carp@fox.nstn.ca> > >Just in case you were not aware of a Supreme Court of Canada ruling last >week on the responsibility of Volunteer directors serving on boards. > >In Cape Breton, a volunteer organization was formed to undertake the >construction of a community project. It ran into financial problems and >the paid manager used payroll deductions held in trust as working >capital. The organization went bankrupt owing Revenue Canada about >$50,000 in with held payroll deductions (EI, income tax, CPP, etc.) They >sought to recover from the volunteer directors. The defense was that >volunteer directors should not be expected to exercise the same duty of >care as paid directors of large corporations. The Federal Court of >Canada said no, that is, the directors were individually and >collectively responsible. The directors appealed to the Federal Court >of Appeal and lost again with the same ruling. They appealed to the >Supreme Court of Canada. Last week, the SofC said they would not hear >the case, meaning that the ruling stands and the directors are >responsible for the debt owing Revenue Canada. (For those of you in the >US, the Supreme Court of Canada can and often does refuse to hear a >case.) > >This is something that anyone involved in groups, such as the ACAP sites >should be aware. It might be useful to hold some kind of seminar on this >or to but together some kind of guide for volunteer directors. What is >the duty of care required? > >Cheers, > >Steve H. > >PS: I may have some of the details incorrect, but the essance is there. -*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- The preceding message was posted on the Sustainable Maritimes mailing list (sust-mar). http://www.chebucto.ns.ca/lists/sust-mar -*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- Sponsors: Chebucto Community Net http://www.chebucto.ns.ca Sierra Club - Chebucto Group http://www.sierraclub.ca Volunteer moderator: Paul Falvo mailto:sust-mar-owner@chebucto.ns.ca PLEASE SEND MESSAGES TO SUST-MAR IN PLAIN TEXT ONLY MESSAGES CONTAINING HTML (MIME) CANNOT BE POSTED
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