Recruiting trustees may be difficult if they have concerns that they become personally liable for their mistakes.
Previously the courts could relieve trustees of this type of liability. Now the Act has extended this to allow charity trustees to apply to the CC, as well as the courts, for relief from personal liability for a breach of trust where the trustee has acted honestly and reasonably.
This will only apply where mistakes have been honestly made. Deliberate breaches of trust by trustees will continue to be taken very seriously.
The Act also permits trustees to use charity funds to take out trustee indemnity insurance without needing CC approval, provided there is no provision in the governing document forbidding this.
These changes were introduced with effect from 27 February 2007.