[24116] in APO-L
[APO-L] Board Liability
daemon@ATHENA.MIT.EDU (Vehlow, Richard)
Wed Jan 21 08:57:50 2004
Date: Wed, 21 Jan 2004 08:57:36 -0500
Reply-To: "Vehlow, Richard" <Richard.Vehlow@ogs.state.ny.us>
From: "Vehlow, Richard" <Richard.Vehlow@ogs.state.ny.us>
To: APO-L@LISTSERV.IUPUI.EDU
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I was having a dinner conversation with two fellow section staff members the
other day. We eventually stumbled upon the omnipresent risk management
topic, and I apparently learned something interesting. If the fraternity is
sued, the 18-member board can be personally liable!
We discussed a few what-ifs, and there was an interpretation made that
theoretically, a region director on one coast can be cleaned out financially
thanks to the litigation stemming from an incident transcontinentally.
I would assume that members of a volunteer organization would be personnally
protected against such personal financial risk. When APO faced an injury
lawsuit in 1988 (which was dismissed), I was understanding that the target
of the lawsuit was the financial assets of the fraternity itself.
If this is indeed the case, then what would a board member have to do to
protect his/her assets if he/she would like to serve in that position? Is
there a way to structure ourselves to avoid this?
-Rich Vehlow
Section 88 Leadership Coordinator
vehlor@alum.rpi.edu
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<P><FONT SIZE=3D2>I was having a dinner conversation with two fellow =
section staff members the other day. We eventually stumbled upon the =
omnipresent risk management topic, and I apparently learned something =
interesting. If the fraternity is sued, the 18-member board can be =
personally liable!</FONT></P>
<P><FONT SIZE=3D2>We discussed a few what-ifs, and there was an =
interpretation made that theoretically, a region director on one coast =
can be cleaned out financially thanks to the litigation stemming from =
an incident transcontinentally.</FONT></P>
<P><FONT SIZE=3D2>I would assume that members of a volunteer =
organization would be personnally protected against such personal =
financial risk. When APO faced an injury lawsuit in 1988 (which was =
dismissed), I was understanding that the target of the lawsuit was the =
financial assets of the fraternity itself.</FONT></P>
<P><FONT SIZE=3D2>If this is indeed the case, then what would a board =
member have to do to protect his/her assets if he/she would like to =
serve in that position? Is there a way to structure ourselves to avoid =
this?</FONT></P>
<P><FONT SIZE=3D2>-Rich Vehlow</FONT>
<BR><FONT SIZE=3D2>Section 88 Leadership Coordinator</FONT>
<BR><FONT SIZE=3D2>vehlor@alum.rpi.edu</FONT>
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