<html><body><div style="font-family: Arial; font-size: 12pt; color: #000000"><div aria-label="Compose body">DEnnis,</div><div aria-label="Compose body"><br></div><div aria-label="Compose body">Liability insurance is <em>not</em> retroactive to mistakes made in the past, .i.e., during John Coate's tenure, correct?</div><div aria-label="Compose body"><br></div><div aria-label="Compose body">John</div><div><br></div><hr id="zwchr"><div style="color:#000;font-weight:normal;font-style:normal;text-decoration:none;font-family:Helvetica,Arial,sans-serif;font-size:12pt;" data-mce-style="color: #000; font-weight: normal; font-style: normal; text-decoration: none; font-family: Helvetica,Arial,sans-serif; font-size: 12pt;"><b>From: </b>dennisobrien@sharejerusalem.com<br><b>To: </b>"kzyxtalk" <kzyxtalk@lists.mcn.org><br><b>Cc: </b>"MCPB Board" <BOD@kzyx.org><br><b>Sent: </b>Monday, June 13, 2016 4:23:25 PM<br><b>Subject: </b>[Kzyxtalk] Liability of Directors, Insurance<br><div><br></div>Volunteer directors of a nonprofit corporation are not liable for monetary damages only if the corporation carries liability insurance (see Corporations Code Section 5239, below).<br><div><br></div>I do not offer an opinion as to whether any of the issues raised on this list could give rise to a claim for monetary damages. However, I am concerned by the report, if accurate, that the organization does not at this time carry liability insurance. Even in the smaller nonprofits I have assisted, liability insurance was a top priority when budgeting resources.<br><div><br></div>Dennis<br><div><br></div><br>5239. (a) There shall be no personal liability to a third party for<br>monetary damages on the part of a volunteer director or volunteer<br>executive officer of a nonprofit corporation subject to this part,<br>caused by the director's or officer's negligent act or omission in<br>the performance of that person's duties as a director or officer, if<br>all of the following conditions are met:<br> (1) The act or omission was within the scope of the director's or<br>executive officer's duties.<br> (2) The act or omission was performed in good faith.<br> (3) The act or omission was not reckless, wanton, intentional, or<br>grossly negligent.<br> (4) Damages caused by the act or omission are covered pursuant to<br>a liability insurance policy issued to the corporation, either in the<br>form of a general liability policy or a director's and officer's<br>liability policy, or personally to the director or executive officer.<br>In the event that the damages are not covered by a liability<br>insurance policy, the volunteer director or volunteer executive<br>officer shall not be personally liable for the damages if the board<br>of directors of the corporation and the person had made all<br>reasonable efforts in good faith to obtain available liability<br>insurance.<br><div><br></div>_______________________________________________<br>Kzyxtalk mailing list<br>Kzyxtalk@lists.mcn.org<br>http://lists.mcn.org/mailman/listinfo/kzyxtalk<br></div><div><br></div></div></body></html>