Senior Execs being removed from OfReg board under proposed changes Loop Cayman Islands

Black Immigrant Daily News

According to draft legislation published in a Legislation Gazette dated November 7, 2022, Parliament will be considering changes to the way the Utility Regulation and Competition Office (OfReg) is run, including who may sit on board of directors of OfReg and what acts the board members be indemnified for.

OfReg Board

Regarding how OfReg is run, prior to the current proposal, there were executive directors who were in charge of different sections of OfReg on a day-to-day basis. These included the Chief Executive Officer, Executive Director of Information, the Executive Director of Energy and the Chief Fuels Inspector, all of whom were also members of the OfReg board of directors.

If the draft legislation passes in its current form, then the following changes will take place:

total number of board members will increase from 10 to 11 membersthe Executive Director of Information, the Executive Director of Energy and the Chief Fuels Inspector will be removed from the board the number of non-executive directors sitting on the OfReg board will go from five to nine

In addition, the Chief Executive Officer will remain on the board, but as a non-voting, ex officio executive member.

Indemnification for acts of board members

Regarding legal protections offered to OfReg board members, the previous rule for indemnification of board members stated that they would be indemnified against all claims except claims, damages, costs, charges or expenses caused by the negligence or bad faith of those persons.

Under the new changes, “bad faith” will be the only item that OfReg board members will not be indemnified for. The new indemnity provision will therefore read as follows:

Indemnity

110. The Government shall indemnify a member of the Office, a member of the Board, an executive member, a member of the staff, and the Secretary against all claims, damages, costs, charges or expenses incurred by those respective persons in the discharge or purported discharge of their functions and powers under this Act, except claims, damages, costs, charges or expenses caused by the bad faith of those persons.

A copy of the draft legislation can be found using the following link:

http://gazettes.gov.ky/portal/pls/portal/docs/1/13216561.PDF

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