Minutes:
The Director of Law and Corporate Governance submitted a report to the Cabinet Meeting on 22nd January, 2007 setting out the provisions of the Local Authorities (Indemnities for Members and Officers) Order 2004. Prior to the introduction of the Order, both Members and Officers enjoyed statutory immunity from civil liability where they acted within the powers of the Authority in good faith and without negligence. However, immunity did not apply where they went beyond the powers of the Authority or acted in bad faith or negligently, or when they were acting on Outside Bodies to which they had been appointed by the Council. Neither did the statutory immunity protect Members and Officers from criminal liability, for example, in respect of charges of manslaughter. The 2004 Order conferred upon local authorities the power to grant indemnities and/or to take out insurance to cover the potential liability of Members (including Co-opted Members) and Officers in a wider range of circumstances. The Director of Law and Corporate Governance summarised those activities covered by and those outside the scope of the power to indemnify and indicated that, subject to the restrictions set out in the 2004 Order, it was up to each Council to decide the extent of any indemnities granted and insurance provided.
He circulated a draft policy on the terms of indemnity, based on the provisions of the 2004 Order, setting out, amongst other things, the circumstances in which the Council would and would not consider indemnifying a Member or Officer; the limit/extent of any indemnification and the procedure for submitting and considering applications for indemnification. Although the majority of the situations set out in the proposed Policy were currently covered by the Council’s existing insurance policies, the Director of Finance and Property was seeking quotations for extending the Council’s insurance cover to meet the additional risks provided for under the proposed Policy.
Under the draft Policy the Standards Committee was given the responsibility for deciding whether or not a Member or an Officer was granted an indemnity and if so on what terms such indemnity would be granted. It was for this reason that the draft policy was submitted to the Committee for consideration with a view to it making recommendations thereon to the Cabinet and Council.
Resolved –
(a) That the Cabinet and Council be recommended to approve the adoption of the draft Policy on Terms of Indemnity now submitted.
(b) That details of any terms of insurance or quotations received by the Director of Finance and Property in respect of cover for the Council’s liability under the Policy on the Terms of Indemnity be reported back to the Cabinet and Standards Committee for approval.
Recommended -
(c) That the Terms of Reference of the Standards Committee be amended by the inclusion of the following:-
“To decide any requests from a Member or Officer for indemnity as set out in the Council’s adopted Policy on Terms of Indemnity”.