Personal Liability for Foundation Trustees

Linda Stapleton

Linda Stapleton

Well-known member
Jun 3, 2003
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I wonder if anyone can help? I tried to do a search on this but came up with nothing, so forgive me if this has been covered before.

I have been asked to become a Trustee of a new charitable Foundation which requires putting my signature on the dotted line (I haven't yet read the document I will be required to sign).

The main reason I am hesitant is that I would like to be sure that should a problem arise e.g. someone decides to claim damages, sue etc., that my personal assets (such as they are) and those of the other Trustees are protected and not liable to be seized. As a Trustee, is a person exempt from personal liability and, if so, is there a possibility that this could change in the future?

Thanks for any help or experiences you could share.

Linda Stapleton
 
F

FireGuy

Rest in peace Amigo!
Aug 21, 2002
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If properly incorporated you should be OK - but I'll defer to Sr. Guzman.

That's why Beyond The Beach is a federally incorporated not-for-profit corporation in Canada.

Gregg
 
F

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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Trustees are exempt from personal liability except in the event that they act beyond the duties vested in them by the Foundation Charter. An example: generally you need a resolution of the Board to buy real estate. If an individual Board member goes ahead and buys something on behalf of the Foundation without the proper authorization, and the rest of the Trustees are not willing to ratify the purchase, the seller may go after the Board member who signed the contract for damages.
 
Linda Stapleton

Linda Stapleton

Well-known member
Jun 3, 2003
633
45
48
Thank You

That was extremely helpful. Thank you very much. It puts my mind at rest.

Linda Stapleton.
 
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