Duties Of Directors

Directors’ Liability

The role of a Board member attracts many legal obligations and failing to meet any of these duties can result in an individual Board member being held personally liable for any consequential financial loss flowing from their conduct.  In addition to accounting for their own wrongdoing, Board members can be held personally liable for the Institute’s misconduct as well as for the wrongdoing of fellow Board members, through the legal principal of joint and several liability.

A TAFE Institute is required to maintain Directors and Officers Liability Insurance on behalf of Board members, which protects them from personal liability for acts committed in the course of their corporate duties for any actions done or not done “in good faith”.  This insurance does not indemnify Board Members against any liability arising out of a wilful breach of duty, fraudulent or malicious act or omission or other act or omission committed with criminal intent, or an improper use of position by the Board Member in order to gain a personal advantage or benefit.

More information regarding the roles and responsibilities of a public entity board members can be found by visiting www.vpsc.vic.gov.au/#board-members.