Part 1Auditors, accounts, directors' liabilities and investigations
Chapter 2Accounts and reports
Bodies concerned with accounting standards etc.
I118Exemption from liability
1
Where a grant has been paid by the Secretary of State to a body under section 16, this section prevents any liability in damages arising in respect of certain acts or omissions occurring during the period of 12 months beginning with the date on which the grant was paid.
2
In this section—
“the exemption period” means the period of 12 months mentioned in subsection (1);
“a relevant body” means the body mentioned in that subsection or a body carrying on any subsidiary activities of that body (within the meaning of section 16);
“section 16(2) activities” means activities concerned with any of the matters set out in section 16(2).
3
Neither a relevant body, nor any person who is (or is acting as) a member, officer or member of staff of a relevant body, is to be liable in damages for anything done, or omitted to be done, during the exemption period for the purposes of or in connection with—
a
the carrying on of any section 16(2) activities of the body, or
b
the purported carrying on of any such activities.
4
Subsection (3) does not apply—
a
if the act or omission is shown to have been in bad faith; or
b
so as to prevent an award of damages in respect of the act or omission on the grounds that it was unlawful as a result of section 6(1) of the Human Rights Act 1998 (c. 42) (acts of public authorities incompatible with Convention rights).