As a board member you can be liable for your organisation’s success and failures. You are accountable to your members (if a member organisation), your stakeholders, and funders. How you manage your funds is your individual responsibility.
As a board member your legal responsibilities are to have a good understanding of:
- your organisation’s constitutional document and its legal structure
- laws that may apply to your organisation such as health and safety, tax, contract and labour laws.
Some boards operate under limited personal liability. This means that the individual board members are not financially responsible for the organisation’s debts if it fails.