It is very unlikely that a school governor would ever be held personally or financially liable, ie: responsible under the law for a failing or error which leads to a prosecution.
Governors act as a group and any powers delegated to committees or individual governors must be agreed by the full governing body as a whole. This makes the whole group responsible for the decisions made.
The only situation where a governor could be liable is if they act criminally or dishonestly. The law states that governors in maintained schools will not be personally liable if they act in “good faith” – honestly, sincerely and with good intentions.
An obvious example that would not meet the standards of good faith is if a governor committed fraud because this would involve lying to others for personal gain.
“The governors of a school shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their powers under subsection (3) or (6).”
[Subsections 3 and 6 explain that governors can spend the budget as they see fit or delegate spending power to the headteacher.]
School Standards and Framework Act 1998
There are also restrictions on what decisions can be delegated to individuals; for example, in a maintained school one governor alone cannot approve the first formal budget plan of the financial year. This law ensures that governors are jointly liable for major decisions made and act as one corporate body.
The fact that governors are protected from personal liability is also confirmed by the DfE in their governance guides for both maintained schools and academies.
Most clerks record the result of votes in general terms (“governors voted in favour of x”) rather than recording the specific vote of each individual governor, so your own personal vote will probably not be minuted unless you ask for it to be recorded.
Any contracts, leases or agreements should be entered into in the name of the governing body itself rather than any particular governor.
In a maintained school the lack of personal liability for governors should also be confirmed in your local Scheme for Financing Schools, which explains the responsibilities of governing bodies and the local authority when a school has a delegated budget. This is what my local scheme says about liability.
“The School Standards and Framework Act gives governors legal protection, both individually and collectively, from any personal liability for their decisions and actions undertaken in good faith.
“It also exempts governors from liability for negligent action directly attributable to the spending of the school’s delegated budget, for example if a faulty piece of equipment were purchased resulting in personal injury.”
Southampton City Council Scheme for Financing Schools
If something does go badly wrong in a school, for example a serious breach of health and safety, any maintained school will be protected by liability insurance provided by their local authority. (Aided and trust schools may be required to arrange their own insurance.)
Liability in Academies
In academies the small group of academy trust members take on limited financial liability, not the trustees. The trustees are equivalent to maintained school governors; the members are equivalent to company shareholders.
The current model articles of association (June 2021) explain that even for members their financial liability is limited to a maximum of £10 if the trust is closed down.
“The liability of the members of the academy trust is limited. Every member of the academy trust undertakes to contribute such amount as may be required (not exceeding £10) to the academy trust’s assets if it should be wound up while they are a member or within one year after they cease to be a member.”
Model Articles of Association (June 2021)
Academies are required by the Academy Trust Handbook to “have adequate insurance cover in compliance with its legal obligations or be a member of the academies risk protection arrangement (RPA)”.
The risk protection arrangement includes governors’ liability insurance. If the trust is not a member of the RPA the Handbook makes it clear it must take out alternative public liability insurance.