Without a board of directors, and constituted as an association, farmers on the IFA’s national council could be personally legally liable should the IFA fall seriously foul of the courts.
James Staines, the IFA’s legal counsel, was involved when the IFA disbanded in 2000 when the High Court imposed daily fines that escalated to £500,000 per day. Farmers remained at the gates of meat processors in an individual capacity in pursuit of a minimum price of 90p/lb.
Staines outlined the option of the IFA changing from an association to an incorporated body, which would have protected limited liability. In an association, if an award to a litigant against the IFA exceeded it’s financial resources, individual members of the national council could be personally pursued for payment.
The IFA could decide to opt for a board of directors as part of governance changes. A board of directors could be in place in an association or an incorporated body.
SHARING OPTIONS: