Liability for breach of statutory duties

Trustees can potentially be held liable for breaches of some statutory duties – for example, health and safety responsibilities or if a trustee acts whilst disqualified.

Trustees of charitable companies can be held liable for breaches of insolvency law – including wrongful or fraudulent trading - and breaches of company law – including acting whilst disqualified as a company director.

Trustees held personally liable might be subject to fines or penalties or be ordered to make good any losses.

Trustee liability insurance might cover some of these liabilities (subject to certain restrictions), but never the cost of criminal penalties or acts due to recklessness.