Frequently asked questions
- Am I personally liable for the consequences of board decisions?
- Has your board got a vice-chair?
- Does a different mileage rate apply if I am training?
Am I personally liable for the consequences of board decisions?
The short answer is technically yes, but you should be indemnified by your organisation. The matter was fully explained in HSC 1999/104 which is still current today and is paraphrased below. Although not referred to in the 1999 circular, it applies equally to Primary Care Trusts and Strategic Health Authorities (SHAs).
The threat of legal action against chairs or non-executives personally, rather than the trust or SHA on which they serve, is very small but, legally, chairs or non-executives are personally liable for their actions and decisions whether acting as individuals or as members of a board.
To provide protection, Trusts and SHAs provide an indemnity for decisions taken properly in the normal course of board business.
NHS trusts and the then health authorities were advised in HSC 1999/104 to issue suitable indemnities to their non-executive board members, as follows:
"A chairman or non-executive member or director who has acted honestly and in good faith will not have to meet out of his or her own personal resources any personal civil liability which is incurred in the execution or purported execution of his or her board function, save where the person has acted recklessly."
This indemnity may be extended to lay members of those committees which have delegated powers to make decisions or take actions on behalf of NHS boards.
The position of executive directors, however, is markedly different from non-executives so the indemnity does not extend to them. The reason for this is that the trust or SHA is always liable for the actions of its employees in the course of their employment.
The indemnity is 'issued' simply by minuting its acceptance in the minutes of the board.
Has your board got a vice-chair?
A number of boards have recently run into problems because they had not appointed a vice-chair. Although boards are not compelled to have a vice-chair, we would recommend it as good practice. A properly appointed vice-chair can avoid difficulties when the chair is not available.
Under the terms of the membership and procedure regulations for all boards, the powers of the chair are passed to the vice-chair, so that the vice-chair can "act as chair" as required. If a vice-chair has not been appointed before a chair becomes incapacitated or resigns, it is then too late.
In a number of these stalemate situations the Appointments Commission has had to appoint a chair because no-one has been able to "act as chair".
Appointing a vice-chair is very easy. At a meeting of the board, the chair and members appoint one of the non-executive members as vice-chair for a period up to the equivalent of the remainder of his/her term as a board member.
When a vice-chair is asked to "act as chair" as a result of the long-term absence of a chair, the commission can in most instances also arrange for additional remuneration to be paid for taking on this additional responsibility. If you want more information or advice about appointing a vice-chair, payment of an acting chair or other board membership issues, e-mail info@appointments.org.uk
Does a different mileage rate apply if I am training?
No. Training agreed by your organisation is part of your NHS business and you are entitled to expenses in the normal way. There is no provision in the order determining the expenses payable to chairs and non-executives for any mileage rates other than those set out below:
| Engine size | p per mile | up to | then p per mile |
|---|---|---|---|
| Up to 1500cc | 43p | 7,500 miles | 18.3p |
| Over 1500cc | 53p | 7,500 miles | 20.5p |