While speaking to the investigator assigned to my complaints, he brought to my attention section 743.1 of the Local Government Act which in turn refers to section 287.2 Indemnification against proceedings He pointed out a particular resolution which had been passed and the justification incorrectly referred to the above sections.

He explained this section refers to defending an action brought against individuals in their positions in government. Individuals are not indemnified for initiating a legal action.

Individuals are free to pursue legal action personally with their own funds.

The law firm Staples, McDannold and Stewart have published an article on their website which concludes with the following:

This case is of significance as it has changed the law in British Columbia. Local government can no longer bring an action for defamation to its corporate reputation. Individual members of Council or staff will still have the ability to do so but such an action will have to be brought by them personally against any defendants. http://www.sms.bc.ca/2011/06/no-defamation-remedy-for-local-government/

Personally - as an ordinary citizen using their own money.

Rather than going back and forth arguing about specific sections and how they are applied, I sent an email to our New Chair, Carol Molstad, requesting the following: I was wondering if you could clarify at the next public meeting how the Local Government Act regarding indemnification is applied.

The response I received: This is to acknowledge receipt of your correspondence. It will be brought forward to the July 20th Board meeting for a response.
Carol Molstad

I encourage anyone interested to attend the meeting July 20, 2011, as our New and Improved Chair gladly answers questions, and this mystery will be solved!!!

I'd like to take this opportunity to mention how much easier it is to receive actual responses to questions from our local government since the AGM.

Previously, it was a crap shoot whether correspondence ever reached a Board meeting, never mind get an answer.

Ah, what a relief. Those days are behind us here in beautiful Union Bay.

The Majority have spoken.