17Negotiations and settlements affecting liability of Board

17 Negotiations and settlements affecting liability of Board

(1)  The Board may take over any negotiations in respect of a liability in respect of which the Board is bound to indemnify any person under this Part, and may take charge of any legal proceedings in respect thereof taken against that person and, at any stage of those negotiations or proceedings, may pay, compromise, or settle any claim in relation thereto.

(2)  The person referred to in subsection (1) shall sign and execute all such warrants, authorities, and documents as may be necessary to give effect to the provisions of that subsection and, in default of his so doing, the court in which any proceedings against that person are pending may order that the same may be signed or executed by the Board on behalf of that person.

(3)  No agreement or settlement entered into, or offer or promise thereof made, by a person in respect of a liability in respect of which the Board is bound to indemnify him under this Part is of any force or effect unless it has been approved by the Board.

(4)  *[Section 17 Subsection (4) added by No. 40 of 1974, s. 10 ]*In exercising its powers under this section in respect of any liability the Board shall be deemed to be acting with the consent and authority of the person whom it is bound to indemnify in respect of that liability, and neither the Board nor any of its servants or agents are liable in defamation in respect of any admission or statement made in good faith in the exercise of those powers.