Saturday, November 28, 2009

Donors' money to pay THS officials' defenses

This is absurd.

The Toronto Star has an article that donors' money will be used to pay the defense costs for Tim Trow and company.

I have no problem with the employees being paid; they are employees and entitled to their paycheques regardless of the legal issues right now.

Did the Toronto Humane Society not purchase directors' and officers' liability insurance, to cover costs in the event of a legal issue? Bob Hambley, the Secretary-Treasurer of THS and therefore responsible for corporate governance, should have known of D&O insurance and had it in place. There's also executive liability insurance, which would have covered the non-directorial personnel charged.

What happened to Ian McConachie, the THS communications person? Why is Hambley suddenly the source of quotes?


Anonymous said...

Most organizations that rely heavily on public donations cannot afford insurance to cover their Boards.I wouldnt be surprised to learn they did not have the coverage because its a huge chunk of money that could have been spent directly on the day to day operation and care of the animals.

Social Mange said...

The THS is now claiming to have D&O liability insurance and that the lawyer(s?) will be paid from that.

A quote from the Toronto Star:

"Frank Addario, former president of the Criminal Lawyers' Association, will be paid with the shelter's liability insurance and not donor money, said THS spokesperson Ian McConachie."

Of course, there was an earlier report that donors' money would be used (which mightily and rightly pissed off a lot of donors). "We owe it to our employees," said secretary-treasurer Bob Hambley, named acting president at a board meeting Friday. He added: "Morally, you have to protect your employees, and legally, you have to indemnify the directors."

So who do we believe?

The actions of the THS board blow your theory out the window. As does the donation drive. Animals did not have basics while the THS board spent half a mill on lawsuits.