Boards beware!

11 Nov 2013

Recently, being a board member seems to have become a lot riskier than ever before.

It has emerged that the board of a social landlord could be asked to pay about £250,000 from their own pockets. This is one option recommended in a report prepared at the request of the HCA following the board’s decision to make a payment to its former chief executive.

It has been suggested that the board may have breached charity laws when agreeing discretionary payments of almost £247,000 which they were not contractually obliged to award.

Earlier this year it was announced that the government proposes to close a ‘regulatory gap’ to make it easier for the Care Quality Commission to prosecute board members. This follows the well-publicised cases involving the Mid Staffordshire NHS Trust and Winterbourne View.

Board members should ensure they always act in a manner that protects themselves as well as their organisation.