Exclusions from Liability Provisions - Regulation Part 7, Section 45

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Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information

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Summary

This section explains that a director or officer of a charity who does not receive an income is not personally liable for unpaid wages. 

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Text of Legislation

45. Section 96 of the Act does not apply to a director or officer of a charity who receives reasonable out-of-pocket expenses but no other remuneration for services performed for the charity.

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Policy Interpretation

Any person who serves as a director or officer of a charity without receiving an income from the charity for their service is not personally liable for wages owed to employees of the charity. Reimbursement for reasonable out of pocket expenses is not considered income.

“Reasonable out-of-pocket expenses” may include a reasonable travel allowance to defray the cost of attending meetings.

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Related Information

Related sections of the Act or Regulation

ESA

• s.96, Corporate officer’s liability for unpaid wages

ESR

• s.1, Definition, “charity”