“The majority of Group Water Scheme directors, officers and committee members are leaving themselves and their schemes exposed to potential legal action.” -  Arachas  Corporate Brokers  Schemes, their directors, officers and committee members can be sued for alleged wrongdoing or poor corporate governance, resulting in sizeable payments being demamded. They should be aware that any action taken against them puts their own personal assets in jeopardy when defending a claim. They are personally liable. The “it won't happen to me” attitude is still prevalent.  As the volume of legislation increases, schemes with limited resources are at greater risk than the large corporate entities with their battery of advisors. In addition to company board directors, the exposure also extends to non-executive directors and officers of a company. Boards of governors, members of committees, charitable trusts or voluntary groups have a similar exposure. In fact, members of schemes or committees may have a higher exposure, as their position may be part time and, therefore, the time required to keep “up to speed” with the changing legislation may not be available. Virtually any decision can lead to an action or a lawsuit. This may be taken by creditors, contractors, members, or indeed by a state regulatory agency. You cannot plead ignorance. In a recent legal case, the court stated quite categorically that each director has a duty to inform his or herself of its affairs. No responsible scheme would continue to trade without employer and public liability insurance or adequate fire and business protection cover. However, operating without directors and officers liability insurance exposes the scheme to risk and threatens the continued viability of the organisation and its personnel. Consider some frequent misconceptions expressed by GWS directors and committee members:- Directors have limited liability      Incorrect  I am not a director so I am not liable    Incorrect  We are only a small group     The same rules apply to all  They cannot touch my personal assets Incorrect This exposure can be transferred in the form of Directors and Officers Liability Insurance. The proposed cover for Members will incorporate Indemnity in respect of claims made in respect for: Wrongful acts, including employment related wrongful acts committed by Directors or Officers, Trustees, Members of Committees, Employees (including volunteers) . • Breach of trust, breach of duty, error, omission, mis-statement, misleading statement and/or neglect •            Loss of documents (up to a sub limit of €25,000) • Defence costs and legal representation expenses for claims against the scheme under the Safety, Health & Welfare legislation • Claims made against an insured person for involuntary, constructive or gross negligence • Manslaughter • PR expenses, crisis costs, reputation protection expenses • Defence costs for contractual liability • Director -v- Director The above Benefits and Options are subject to the policy terms, conditions, limits and exclusions and a copy of same is available upon request.    GALWAY Sean Murray Direct Line: 091 549 026 Email sean@future.ie FUTUR€ No. 5 Mercahnts Road Galway MAYO Noreen Gilligan Direct Line: 094 937 1511 Email ngilligan@future.ie FUTUR€ The Square, Claremorris Co. Mayo ALL OTHER LOCATIONS Jerry O’Briwn Direct Line: 087 220 5829 Email jerry.obrien@arachas.ie ARACHAS 9 Eastgate Avenue Eastgate Business Park Little Island, Cork