Certain provisions of the Companies Act 2006 came into force on 1 October. Amongst these and of chief relevance to trustees are new requirements in relation to directors' indemnities:
The 2006 Act allows trustee companies to provide a "qualifying pension scheme indemnity" in favour of its directors.
- The indemnity can only be in respect of that company's activities as a pension scheme trustee.
- The indemnity must not cover fines or regulatory penalties.
- Disclosure of any such indemnity is required in the directors' report.
- It remains possible for trustee-directors to be covered by insurance paid for by the sponsoring employer.
However, it is not clear whether an existing indemnity which infringes the new Companies Act requirements would be void in its entirety. Where there is an issue, the indemnity should be amended to ensure compliance with the new provisions.