Liability is the state of being legally responsible for something. Members of the board are equally responsible in law for board actions and decisions.
The Management Committee is ultimately accountable for the organisation. They are therefore responsible or liable for the consequences of actions taken or not taken by the organisation, its staff or volunteers and other Management Committee members.
What this means is that the Management Committee may be held responsible for making good any loss or damage (financial or otherwise) to the organisation or to third parties and may be held personally responsible, where relevant.
However, it's important to keep this in perspective. Very few Management Committee members who act honestly and diligently in carrying out their responsibilities suffer any financial loss as a result of their involvement. More...
For more information on liability and legal structures click here.