Review of the Registered Clubs Industry in NSW - Clubs NSW

9 Improving corporate governance
Box 9.4
IPART’s recommended post-election training model
Directors must complete two core training modules which target the core areas that
stakeholders indicated are most important – understanding financial statements and
directors’ duties – by either attending a seminar or reviewing materials (e.g., online) within
12 months of being elected (or re-elected) to the board.
Training should be scaled appropriately according to club size, so that:
– for clubs with gaming machine revenue of greater than $1 million a year, all directors
need to complete the core training modules, and
– for clubs below this threshold, boards need to ensure that at least two of their board
complete the core training modules.
OLGR approves the core training modules. This ensures the modules contain relevant
content and are appropriately priced. It is also consistent with OLGR approving the preelection
training package.
Directors keep records of the core training modules they have completed. OLGR checks
clubs compliance with this training requirement as part of its regular compliance audits of
clubs.
OLGR has the discretion to grant temporary or permanent exemptions in a limited number
of circumstances, such as recognition for prior learning, or illness.
The training model IPART originally proposed did not apply to small clubs (ie, clubs
with gaming machine revenue of $1 million or less a year) because the more
extensive and ongoing training requirements in this model were more suited to
directors of clubs with relatively diverse and sophisticated business operations.
Further, IPART was concerned that requiring all directors of small clubs to complete
the extensive training requirements would adversely affect such clubs’ ability to
attract people to board positions.
However, IPART has revised and simplified this model so that its recommended
training model now focuses on core areas that are relevant to all directors,
irrespective of club size. In addition, under the recommended model small clubs
need only ensure that two directors complete the core training modules. IPART
envisages that through their interactions with the rest of the board, these directors
will disseminate what they learned from completing core training to the other
directors.
IPART considers that the requirement for board members to undertake the two core
training modules could be counter-productive if there was no recognition of prior
learning. Directors with useful skills or experience could be deterred from joining
club boards if they were required to undergo training in areas in which they already
have expertise. Therefore, under IPART’s recommended training model OLGR
would have the discretion to grant permanent exemptions from training based on
prior learning (and temporary exemptions based on illness).
Review of the Registered Clubs Industry in NSW IPART 149