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Public Services Reform (Scotland) Act 2010

Section 127 – Charity trustees’ indemnity insurance

343.This section inserts section 68A into the Charities and Trustee Investment (Scotland) Act 2005.

344.Section 68A(1) allows charity trustees to purchase, from charity funds, indemnity insurance against personal liability in their role as charity trustee or as directors or officers of any body corporate carrying on any activities on behalf of the charity.

345.Sections 68A(2) and (3) set out certain types of liability that must be excluded from the provision of any indemnity, for example liability incurred by a trustee to pay a fine imposed in criminal proceedings.

346.Section 68A(4) clarifies that this provision does not allow the purchase of insurance if it is expressly prohibited by the charity’s constitution and clarifies that indemnity insurance can be provided despite any provision prohibiting the charity trustees receiving any personal benefit from charity funds.

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Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.


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