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Jersey Bank Depositors Compensation Board: Indemnification of Members - Legal Claims

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A decision made 7 September 2011 regarding:

Decision Reference:  MD-E-2011-0136

Decision Summary Title :

Jersey Bank Depositors Compensation Board: Indemnification

 

Date of Decision Summary:

August 2011

Decision Summary Author:

 

Director, Finance Industry Development

 

Decision Summary:

Public or Exempt?

 

Public

Type of Report:

Oral or Written?

Written

 

 

Person Giving

Oral Report:

n/a

Written Report

Title :

Jersey Bank Depositors Compensation Board: Indemnification

 

Date of Written Report:

August 2011

Written Report Author:

Director, Finance Industry Development

 

Written Report :

Public or Exempt?

 

Public

Subject:  

 

Jersey Bank Depositors Compensation Board: Indemnification of members in relation to costs that they may incur in legal claims against them personally in their capacity as Board members.

 

 

Decision(s):

 

The Minister agreed to the Jersey Bank Depositors Compensation Board (“the Board”) indemnifying its members in relation to costs that they may incur in legal claims against them personally in their capacity as Board members.

 

Reason(s) for Decision:

 

Members of the Jersey Bank Depositors Compensation Board may incur costs as a result of legal claims against them personally in their capacity as Board members.  The Minister has received independent legal advice that it would be appropriate for the Board to indemnify its members in relation to such costs.

 

Resource Implications:

 

There are no financial or manpower costs for the States. Any indemnification costs incurred by the Board in this respect would be an administrative cost of the Board and would therefore be met from the Board's funds, or if no funds are available, through borrowing by the Board until funding is available.

 

Action required:

 

The Minister to agree to the Board giving the indemnities.

 

Signature:

 

 

Senator AJH Maclean

Position:

 

Economic Development Minister

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Jersey Bank Depositors Compensation Board: Indemnification of Members - Legal Claims

Jersey Bank Depositors Compensation Board: Indemnification

 

 

THE ISSUE

 

  1. Members of the Jersey Bank Depositors Compensation Board may incur costs as a result of legal claims against them personally in their capacity as Board members. 

 

  1. The Minister received independent legal advice that it would be appropriate for the Board to indemnify its members in relation to such costs.

 

  1. It is recommended that the Minister agrees to the Board indemnifying its members in relation to such costs.

 

  1. There are no financial or manpower implications for the States. Any indemnification costs incurred by the Board in this respect would be an administrative cost of the Board and would therefore be met from the Board's funds, or if no funds are available, through borrowing by the Board until funding is available.

 

 

BACKGROUND

 

  1. Members of the Jersey Bank Depositors Compensation Board will administer the Jersey Bank Depositors Compensation Scheme (“DCS”) in the unlikely event of a Jersey bank failure. 

 

  1. Although the Board and its members benefit from a statutory limitation of liability provision, Board members may incur costs personally as a result of legal action taken against them personally in their capacity as Board members (e.g. legal defence costs). 

 

  1. The Minister has received independent legal advice that it would be appropriate for the Board to indemnify its members in relation to such costs – see written advice and approved indemnity wording (“SD1”).

 

 

RECOMMENDATION 

 

  1. It is recommended that the Minister agrees to the Board indemnifying its members in relation to such costs.

 

 

 

 

 

Director, Finance Industry Development

August 2011

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