OG100 C3 TRUSTEE INDEMNITY INSURANCE

In this section...

OPERATIONAL GUIDANCE

TRUSTEE INDEMNITY INSURANCE

MODEL SCHEME FOR UNINCORPORATED CHARITIES

OG 100 C3 – 27 February 2007

Functional responsibility

For action

Charity Services Division:

Advice and Orders Unit
Large Charities Unit
Welsh Office

For information

All other units of Charity Services Division

Legal Division

Index to further related information

Model Scheme

	THE CHARITY COMMISSION FOR ENGLAND AND WALES
	Under the power given in the Charities Act 1993
	Orders that from today, the
	[date]
	the following
	Scheme
	will affect the trusts of the charity known as
	[name]

1. Definitions
In this Scheme:
"the charity" means the charity identified at the beginning of this Scheme.
"the existing governing document" means ..................................................
2. Administration
The charity is to be administered in accordance with the existing governing document as altered or affected by this Scheme.
3. Alteration of existing governing document
(a)	Notwithstanding any provision to the contrary in the existing governing document, the trustees of the charity may provide indemnity insurance for themselves out of the funds of the charity as and when required, provided that the policy will contain a provision which has the effect that the insurance shall not indemnify the trustees against:
	(i)	fines or regulatory penalties;
	(ii)	the costs of unsuccessfully defending criminal prosecutions for offences arising out of the fraud or dishonesty or wilful or reckless misconduct of a trustee; and
	(iii)	liabilities to the charity which result from conduct which the trustee knew, or must reasonably be assumed to have known, was not in the interests of the charity, or where the trustee did not care whether such conduct was in the interests of the charity or not.
(b)	The trustees shall exercise the duty of care set out in clause 4 (below) whenever they exercise this power.
4. The duty of care
The duty of care requires the trustees to exercise such care and skill as is reasonable in the circumstances, having regard in particular:
(1)	to any special knowledge or experience that they have or hold themselves out as having; and
(2)	if a person acts as a trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession.
GENERAL PROVISION
5. Questions relating to the Scheme The Commission may decide any question put to it concerning: (1) the interpretation of this scheme; or (2) the propriety or validity of anything done or intended to be done under it.

Index to further related information

In this section...

1. Definitions

2. Administration

3. Alteration of existing governing document

4. The duty of care

5. Questions relating to the Scheme