IMMUNITY
INSURANCE
INDEMNIFICATION
The State of South Carolina encourages people to volunteer their time and expertise to serve on association boards (e.g., non profit trade association boards) by providing statutory immunity from being named as a defendant in a lawsuit.
NAR, SCR, and local associations want volunteers and provide insurance and indemnification. The SCR legal action fund can help defend.
Here is the statute for immunity so long as you are making a good faith effort at doing your job (e.g., paying attention, reading materials, avoiding conflicts of interest, not embezzling/crime):
SECTION 33-31-834. Immunity from suit.
(a) All directors, trustees, or members of the governing bodies of not-for-profit cooperatives, corporations, associations, and organizations described in subsection (b) are immune from suit arising from the conduct of the affairs of these cooperatives, corporations, associations, or organizations. This immunity from suit is removed when the conduct amounts to wilful, wanton, or gross negligence. Nothing in this section may be construed to grant immunity to the not-for-profit cooperatives, corporations, associations, or organizations.
(b) Subsection (a) applies to the following:
(1) electric cooperatives organized under Chapter 49, Title 33;
(2) not-for-profit corporations, associations, and organizations, as recognized in and exempted from taxation under Federal Income Tax Code Section 501(c)(3), (c)(6), or (c)(12).
Posted by: Byron King on 01/03/24 (This information is only accurate as of 01/03/24. You must contact SCR for updates and changes to this information after 01/03/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.