Review of the Registered Clubs Industry in NSW - Clubs NSW

9 Improving corporate governance
It is even more difficult to define what constitutes effective corporate governance for
registered clubs, because of the diversity in the size and type of clubs in the industry.
Based on stakeholder comments and its observations of case study clubs, IPART
considers that effective corporate governance for clubs includes the following
aspects:
management and boards being accountable to club members for their actions and
use of club resources, through disclosure of relevant information to members
management and boards ensuring that appropriate risk management systems are
in place at their club
boards engaging in succession planning to ensure regular renewal, for example by
targeting club members who they think will make useful contributions to their
club
management and boards using strategic planning to develop appropriate
responses to the challenges their club is likely to face in the future
boards assessing management’s performance, as well as their own performance,
at least on an annual basis
boards monitoring how successful management is in carrying out board
decisions.
Ensuring that board members and managers undertake appropriate training is one
way to improve club corporate governance. For example, the provision of induction
training for new board members and managers can help them to understand their
respective roles and responsibilities. Ongoing training and development can help
board members and managers to improve their skill-sets and keep up-to-date with
recent developments in the registered clubs industry (such as the changes to the
amalgamation regime discussed in Chapter 11).
9.2 Overview of the existing corporate governance framework
On the whole, IPART is satisfied that existing framework for corporate governance in
the clubs industry – which is created by the ClubsNSW’s Code of Practice and Best
Practice Guidelines, and the requirements of Registered Clubs Act – is a useful,
practical framework for clubs in NSW. The key aspects of this framework are
summarised below.
142 IPART Review of the Registered Clubs Industry in NSW