Act Now - The Report of the WCB Legislative Review Panel to the

3. It is suggested that the first review should take place 1 year after legislative changesarising from this report are enacted.3.2.7 Fiduciary Responsibility of the WCB Board of DirectorsSection 90 of the Financial Administration Act (FAA) describes the fiduciaryresponsibility for members of a governing board of directors of a public agency. Thissection of the FAA applies to the WCB Board of Directors.The Panel was asked to consider whether or not the fiduciary responsibility of the WCBBoard of Directors should be repeated in the Acts. In keeping with the Panel’s concernabout transparency and accountability, the Panel feels that the addition of a clause similarto that now in the FAA would provide greater clarity.Recommendation: 3.2.7 Fiduciary Responsibility of the WCB Board of Directors1. The legislation should be changed to add a fiduciary responsibility clause in the Actssimilar to that now in the Financial Administration Acts.3.2.8 Liability Protection for the WCB Board of DirectorsSubsection 90(3) of the FAA indemnifies members of boards of directors from liability ifthe members act honestly and in good faith or rely in good faith on professional advice(e.g., advice from an auditor or lawyer). This protection from liability extends to themembers of the WCB Board of Directors but not the members of the Appeals Tribunal.Indemnification of the members of WCB boards of directors is commonly found inworkers’ compensation legislation of other jurisdictions. The Panel agrees that membersof the WCB Board of Directors should be protected from liability for actions takenhonestly and in good faith. The Panel further believes that this protection should beextended to members of the Appeals Tribunal.WCB Legislative Review Panel Report Page 23 of 128December, 2001