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Review of the Registered Clubs Industry in NSW - Clubs NSW

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G <strong>Clubs</strong><strong>NSW</strong> - steps to establish<strong>in</strong>g a registered club<br />

9. Fundrais<strong>in</strong>g for a club before it is registered under <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> Act (and<br />

<strong>in</strong>deed afterwards) is very difficult. The fundrais<strong>in</strong>g provisions <strong>of</strong> <strong>the</strong><br />

Corporations Act require disclosure statements or a document <strong>in</strong> <strong>the</strong> form <strong>of</strong> a<br />

prospectus toge<strong>the</strong>r with a variety <strong>of</strong> compliance issues. These are all<br />

prohibitively complex and expensive. Accord<strong>in</strong>gly <strong>the</strong> usual forms <strong>of</strong> fundrais<strong>in</strong>g<br />

for clubs seek<strong>in</strong>g to become registered are those generally available to community<br />

and charitable organisations such as sausage sizzles, donations, membership<br />

fundrais<strong>in</strong>g nights etc. This was not <strong>the</strong> case prior to clubs be<strong>in</strong>g required to<br />

<strong>in</strong>corporate <strong>in</strong> 1972.<br />

10. It is also possible for <strong>the</strong> club at this stage to apply for a functions licence under<br />

<strong>the</strong> Liquor Act 1982. A functions licence will allow <strong>the</strong> club to sell liquor at specific<br />

functions conducted by <strong>the</strong> club on 26 occasions each year (one every two weeks).<br />

A functions licence will give <strong>the</strong> club:<br />

– experience <strong>in</strong> <strong>the</strong> sale <strong>of</strong> liquor and <strong>in</strong> responsible service <strong>of</strong> alcohol<br />

– a modest but reasonably regular revenue stream.<br />

11. It is recommended (and almost essential) that <strong>the</strong> club trade for at least 18 months<br />

after <strong>in</strong>corporation before mak<strong>in</strong>g application for a certificate <strong>of</strong> registration under<br />

<strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> Act. The reasons for this are as follows:<br />

– The club needs to have at least 200 members (100 members outside <strong>the</strong><br />

metropolitan area) before it can make an application to <strong>the</strong> court.<br />

– The club has to acquire suitable premises <strong>of</strong> which it is <strong>the</strong> bona-fide occupier<br />

and which are ma<strong>in</strong>ta<strong>in</strong>ed from <strong>the</strong> funds <strong>of</strong> <strong>the</strong> club (see po<strong>in</strong>t 13 below).<br />

– The club will need to demonstrate to <strong>the</strong> Licens<strong>in</strong>g Court that it has kept<br />

correct accounts and books <strong>in</strong> respect <strong>of</strong> <strong>the</strong> f<strong>in</strong>ancial affairs <strong>of</strong> <strong>the</strong> club and<br />

that <strong>the</strong> board meets at least once a month and ma<strong>in</strong>ta<strong>in</strong>s proper m<strong>in</strong>utes <strong>of</strong><br />

those meet<strong>in</strong>gs.<br />

– The club needs to appo<strong>in</strong>t an auditor.<br />

– The club needs to demonstrate to <strong>the</strong> Licens<strong>in</strong>g Court that it is and will<br />

cont<strong>in</strong>ue to be f<strong>in</strong>ancially viable. A period <strong>of</strong> 18 months <strong>of</strong> trad<strong>in</strong>g and<br />

operat<strong>in</strong>g will help.<br />

– The club needs to have a good track record <strong>in</strong> relation to <strong>the</strong> sale <strong>of</strong> alcohol and<br />

generally <strong>in</strong> relation to its activities.<br />

– The Corporations Act requires <strong>the</strong> club to have its first annual general meet<strong>in</strong>g<br />

with<strong>in</strong> 18 months <strong>of</strong> <strong>in</strong>corporation. This annual general meet<strong>in</strong>g will<br />

demonstrate <strong>the</strong> ability (or o<strong>the</strong>rwise) <strong>of</strong> <strong>the</strong> club to provide for <strong>the</strong> orderly<br />

election <strong>of</strong> its govern<strong>in</strong>g body and satisfy <strong>the</strong> statutory report<strong>in</strong>g requirements<br />

to members and <strong>the</strong> ASIC requirements imposed on a public company.<br />

– The club will have to appo<strong>in</strong>t a Secretary (ei<strong>the</strong>r on an employed or honorary<br />

basis) who has completed all necessary educational requirements, has <strong>the</strong><br />

requisite RSA and Gam<strong>in</strong>g Mach<strong>in</strong>es Act certificates and understands his/her<br />

responsibilities as <strong>the</strong> Chief Executive Officer <strong>of</strong> <strong>the</strong> club and who will<br />

ultimately be <strong>the</strong> approved secretary (licensee).<br />

254 IPART <strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong>

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