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New South Wales
Registered Clubs Amendment Bill 2003
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Registered Clubs Act 1976 No 31 2
Schedule 1 Amendments 3
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2003
New South Wales
Registered Clubs Amendment Bill 2003
Act No , 2003
An Act to amend the Registered Clubs Act 1976 in relation to the accountability
of registered clubs, the appointment of managers for premises of registered
clubs, and for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 Registered Clubs Amendment Bill 2003
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Registered Clubs Amendment Act 2003.
2 Commencement
This Act commences on a day or days to be appointed by
proclamation.
3 Amendment of Registered Clubs Act 1976 No 31
The Registered Clubs Act 1976 is amended as set out in Schedule 1.
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Amendments Schedule 1
Schedule 1 Amendments
(Section 3)
[1] Section 10 Requirements to be met by clubs
Omit section 10 (1) (m). Insert instead:
(m) The club must comply with any requirements imposed
on the club by Part 4A.
[2] Sections 34A34E
Insert after section 34:
34A Appointment of managers
(1) A registered club that has more than one set of premises must
appoint a different manager, approved by the Board under
section 34C, for each set of premises of the club at which the
secretary of the club is not in attendance.
Maximum penalty: 50 penalty units.
(2) Subsection (1) does not apply:
(a) to premises of a registered club if the club has 2 sets of
premises only and the premises concerned:
(i) are within 10 kilometres of the other premises of
the club in a case where the main premises of the
club are situated in the metropolitan area (as
defined in section 17AC (1)) or are within 50
kilometres of the other premises of the club in a
case where the main premises of the club are not
situated in the metropolitan area, or
(ii) are staffed by less than 5 full-time employees, or
(b) in such other circumstances as are prescribed by the
regulations.
(3) Despite subsection (1), a registered club may appoint a person
to act as a manager of any premises of the club for the
purposes of that subsection even though the person has not
been approved by the Board if the club has applied to the
Board for the approval of the person to be appointed manager
and the appointment complies with the requirements of
section 34B (1) (b) and (c).
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Schedule 1 Amendments
(4) A person's authorisation to be appointed under subsection (3)
to act as manager of a registered club expires on the
determination by the Board of the relevant application for
approval.
34B Restrictions on who may be appointed as manager
(1) The following restrictions apply to the appointment of a
manager of any premises of a registered club:
(a) A person may not be appointed as the manager of
premises unless the person is approved by the Board to
manage the premises or premises of the class
concerned.
(b) Only a natural person may be appointed to manage the
premises.
(c) A person cannot be appointed as manager of the
premises if at the time of the appointment he or she
already holds an appointment as manager of premises
of another registered club.
(2) Subject to section 34A (3), an appointment in contravention
of this section is void for the purposes of section 34A.
34C Board approval of manager
(1) An application for the Board's approval of a person to manage
any premises of a registered club is to be made in the form
approved by the Board.
(2) The Board is not to give its approval unless it is satisfied that
the person concerned:
(a) is a fit and proper person to manage the premises, and
(b) understands his or her responsibilities in relation to, and
is capable of implementing, practices in place at the
premises for ensuring the responsible sale, supply and
service of liquor and the prevention of intoxication, and
(c) understands his or her responsibilities under the
Gaming Machines Act 2001 in relation to the conduct of
gambling on the premises.
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Amendments Schedule 1
(3) If the Board is satisfied on the information before it that there
is nothing that might preclude it from giving its approval, but
requires more information before making a final decision, the
Board may give a provisional approval of the person to be
such a manager.
(4) A provisional approval is sufficient to authorise the
appointment of the person, in accordance with section 34A, as
manager of the premises concerned for a period specified by
the Board. Any such appointment lapses, however, unless the
Board confirms its approval within that period (or within such
extension of that period as the Board may allow).
(5) An approval or provisional approval may be given so as to
apply in relation to particular premises, to all premises of a
specified class or to all premises of all registered clubs, as the
Board thinks fit.
34D How appointments are made and revoked
(1) A registered club must give the Board notice of the
appointment of a person as manager of any premises of the
club.
Maximum penalty: 20 penalty units.
(2) The appointment of a manager is not in force until the
registered club has given the Board notice of the appointment
as required by this section, accompanied by the declaration
referred to in subsection (5) (b).
(3) The appointment of a manager is revoked by the registered
club giving notice under this section of the appointment of a
new manager or by the registered club or manager giving the
Board notice of the manager's ceasing to act as manager.
(4) A notice of appointment of or of ceasing to act as manager
may specify a day that is later than the day the notice is given
as the day the notice is to take effect, and the notice takes
effect accordingly.
(5) A notice under this section:
(a) must be completed in writing in the form approved by
the Board, and
(b) must be accompanied by a declaration in writing, in a
form approved by the Board, of the person to be
appointed as manager of the premises concerned:
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Registered Clubs Amendment Bill 2003
Schedule 1 Amendments
(i) signifying his or her acceptance of the
appointment, and
(ii) certifying such matters as the form of notice may
require (including matters relating to the person's
responsibilities in relation to, and capacity to
implement, practices in place at the premises for
ensuring the responsible sale, supply and service
of liquor, and the prevention of intoxication, on
the premises and the responsible conduct of
gambling on the premises).
(6) This section also applies to the appointment of a person to act
as manager under section 34A (3).
34E Responsibilities and liabilities of managers of premises of
registered clubs
(1) A person appointed as manager of any premises of a
registered club is responsible at all times for the personal
supervision and management of the conduct of the business of
the club at those premises in accordance with this Act and the
Gaming Machines Act 2001, including ensuring that the
following conditions are complied with:
(a) any condition on the certificate of registration of the
club in so far as it relates to those premises,
(b) any condition on the registered club's authorisation to
keep or dispose of gaming machines under the Gaming
Machines Act 2001.
(2) If an element of an offence under a relevant management
provision is an act or omission by a secretary of a registered
club in relation to any premises of the club, a person who is
manager of those premises is, while responsible under
subsection (1), responsible in respect of the offence as though
that person were also the secretary and is liable for the offence
accordingly.
(3) This section does not affect any liability of a secretary for a
contravention by the secretary of a provision of this Act or the
Gaming Machines Act 2001.
(4) In sections 17, 33A, 35 and 35A, a reference to the secretary
of a registered club or a person who was the secretary of a
registered club includes a reference to a person appointed
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Amendments Schedule 1
under section 34A as the manager (or to act as manager) of
any premises of a registered club or a person who formerly
held such a position, respectively.
(5) In this section, relevant management provision means:
(a) a provision of Part 6 (other than section 49) of this Act,
or
(b) a provision of Division 2, 3 or 4 of Part 4 of the Gaming
Machines Act 2001, or
(c) any other provision of either of those Acts, or the
regulations made under those Acts, as is prescribed by
the regulations for the purposes of this subsection.
[3] Section 35A Investigations by Director
Insert "or whether a registered club or member of the governing body or
employee of a registered club is complying with the provisions of Part 4A"
after "registered club" in section 35A (1).
[4] Section 35A (2)
Omit the subsection. Insert instead:
(2) The Commissioner of Police is to inquire into, and report to
the Director on, such matters as the Director may request
concerning a person who is the subject of an investigation
under this section.
[5] Section 35A (3)
Insert ", or is a member of the governing body of or an employee of a
registered club that is the subject of such an investigation," after "under
this section".
[6] Section 35A (5)
Insert after section 35A (4):
(5) A person must not fail to comply with a requirement of the
Director contained in a notice under subsection (3).
Maximum penalty (subsection (5)): 20 penalty units.
[7] Section 39 Disclosure of interests of members of governing body
of registered club
Omit the section.
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Schedule 1 Amendments
[8] Section 39A Requirement to declare financial interest in hotels
Omit the section.
[9] Part 4A
Insert after Part 4:
Part 4A Accountability of registered clubs
Division 1 Interpretation
41B Definitions
(1) In this Part:
close relative of a person means:
(a) a parent, child, brother or sister of the person, or
(b) a spouse of the person or of a person referred to in
paragraph (a), or a person with whom the person or a
person referred to in paragraph (a) has a de facto
relationship (within the meaning of the Property
(Relationships) Act 1984).
contract includes commercial arrangement.
gift includes money, hospitality or discounts.
land of a registered club means any land owned or occupied
by the club.
top executive of a registered club means a person who is one
of the five highest paid employees of the club at each separate
premises of the club.
(2) A reference in this Part to a matter being approved by the
governing body of a registered club is a reference to the
matter being approved at a meeting of the governing body of
the registered club at which a majority of the votes cast
supported the approval.
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Amendments Schedule 1
Division 2 Disclosure of interests of members of
governing body and employees of registered
clubs
41C Disclosure of interests in contracts
(1) A member of the governing body of a registered club (other
than a co-operative) who has a material personal interest in a
matter that relates to the affairs of the registered club must, as
soon as practicable after the relevant facts have come to the
member's knowledge, declare the nature of the interest at a
meeting of the governing body.
Maximum penalty: 50 penalty units.
(2) It is a defence to a prosecution for an offence against
subsection (1) if the defendant establishes that:
(a) at the time of the alleged offence there were guidelines
prescribed by the regulations and in force under section
41X, and
(b) those guidelines included provisions to the effect that
the material personal interest concerned was not of a
type that was required to be declared under that
subsection.
(3) The provisions of sections 191 (2) and 192 of the
Corporations Act 2001 of the Commonwealth apply to and in
respect of a declaration under subsection (1) (with necessary
modifications and as if those provisions were a law of this
State) in the same way as they apply to and in respect of a
notice under section 191 (1) of that Act.
41D Declaration of financial interests in hotels
(1) A member of the governing body of a registered club or top
executive of a registered club who, on or after the
commencement of this subsection, acquires a financial
interest in respect of a hotel must give a written declaration of
that interest to the secretary of the club within 14 days after
acquiring the interest.
Maximum penalty: 50 penalty units.
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Schedule 1 Amendments
(2) A person who, at the commencement of this subsection, is a
member of the governing body of a registered club or top
executive of a registered club and holds a financial interest in
respect of a hotel must give a written declaration of that
interest to the secretary of the club within 14 days after that
commencement.
Maximum penalty: 50 penalty units.
(3) A person who becomes a member of the governing body of a
registered club or top executive of a registered club after the
commencement of this section and who, at the time of
becoming a member of the governing body or top executive,
holds a financial interest in respect of a hotel must give a
written declaration of that interest to the secretary of the club
within 14 days after becoming a member of the governing
body or top executive.
Maximum penalty: 50 penalty units.
(4) Nothing in subsection (2) or (3) requires a person to declare
an interest if the person has already declared the interest and
the declaration has been recorded by the club.
(5) This section does not apply to the secretary of a registered
club or a person appointed as manager of any premises of a
registered club under section 34A.
Note. Section 33A prohibits a secretary of a registered club from holding
a hotelier's licence under the Liquor Act 1982 or acquiring any financial
interest in respect of a hotel. Section 34E (4) applies section 33A to
managers of registered clubs.
41E Disclosure of gifts from affiliated bodies
(1) A member of the governing body of a registered club or a top
executive of a registered club must, in accordance with this
section, declare any gift received by the member or top
executive after the commencement of this section from an
affiliated body if the value of the gift exceeds $500.
Maximum penalty: 50 penalty units.
(2) A declaration under this section in relation to a gift must:
(a) be in a form approved by the Director, and
(b) contain the particulars required by the form, and
(c) be submitted to the secretary of the registered club
concerned within 14 days of receipt of the gift.
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Amendments Schedule 1
(3) It is a defence to a prosecution for an offence against
subsection (1) if the defendant establishes that he or she did
not know, and could not reasonably be expected to have
known, that the body from which the gift was received was an
affiliated body.
(4) In this section, a reference to a gift received from an affiliated
body of a registered club is a reference to a gift received from
a related body corporate within the meaning of the
Corporations Act 2001 of the Commonwealth, or any other
body, that within the period of 12 months immediately
preceding the receipt of the gift obtained a grant or subsidy
from the club.
41F Disclosure of gifts from persons or organisations with
contracts with registered club
(1) A member of the governing body of a registered club or an
employee of a registered club must submit a written return in
each year to the club, in accordance with the regulations,
declaring any gift received by the member or employee from
a person or organisation that is a party to a contract with the
club.
Maximum penalty: 50 penalty units.
(2) It is a defence to a prosecution for an offence against
subsection (1) if the defendant establishes that:
(a) at the time of the alleged offence there were guidelines
prescribed by the regulations and in force under section
41ZC, and
(b) those guidelines included provisions to the effect that
the gift concerned was not of a type that was required to
be declared in a return under that subsection.
(3) It is a defence to a prosecution for an offence against
subsection (1) if the defendant establishes that he or she did
not know, and could not reasonably be expected to have
known, that the person or organisation from whom or which
the gift was received was a party to a contract with the
registered club concerned.
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Schedule 1 Amendments
Division 3 Register of interests and reporting
requirements of registered clubs
41G Secretary to keep register
The secretary of a registered club must:
(a) in accordance with the regulations (if any), keep a
register of disclosures, declarations and returns made to
the club under Division 2 (including a declaration
recorded as referred to in section 41D (4)), and
(b) provide a copy of the register to the Director each year
and at other times on the written request of the Director,
and
(c) make the register available for inspection by a member
of the club on the written request of the member.
Maximum penalty: 100 penalty units.
41H Annual reporting requirements
(1) A registered club must, in accordance with the regulations,
send to each of its members in written form the following
information in relation to each financial year of the club
ending after the commencement of this section:
(a) disclosures, declarations and returns received by the
club under Division 2 during the reporting period,
(b) the number of top executives of the club (if any) whose
total remuneration for the reporting period (comprising
salary, allowances and other benefits) falls within each
successive $10,000 band commencing at $100,000,
(c) details (including the main purpose) of any overseas
travel during the reporting period by a member of the
governing body of the club or an employee of the club
in the person's capacity as a member of the governing
body or employee, including the costs wholly or partly
met by the club for the member of the governing body,
employee and any other person connected with any
such travel,
(d) details of any loan made during the reporting period to
an employee of the club if the amount of the loan
(together with the amount of any other loan to the
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Amendments Schedule 1
employee by the club that has not been repaid) is more
than $1,000, including the amount of the loan and the
interest rate, if any,
(e) details of any contract approved during the reporting
period under section 41M or of any controlled contract
(within the meaning of section 41O) entered into by the
club within the reporting period,
(f) the name of any employee of the club who the
registered club is aware is a close relative of a member
of the governing body of the club or of a top executive
of the club and the amount of the remuneration package
paid to the employee,
(g) details of any amount equal to or more than $30,000
paid by the club during the reporting period to a
particular consultant, including the name of the
consultant and the nature of the services provided by
the consultant,
(h) the total amount paid by the club during the reporting
period to consultants other than amounts required to be
included in the report under paragraph (g),
(i) details of any settlement made during the reporting
period with a member of the governing body of the club
or an employee of the club as a result of a legal dispute
and the amount of any associated legal fees incurred by
the member or employee that were or are to be paid by
the club, unless the disclosure of such information
would be in breach of any confidentiality provision
agreed to by the club,
(j) details of any legal fees (not referred to in paragraph (i))
paid by the club on behalf of a member of the governing
body of the club or an employee of the club,
(k) the total amount of the profits (within the meaning of
the Gaming Machine Tax Act 2001) from the operation
of approved gaming machines in the club during the
period of 12 months ending on 30 November in the year
to which the report relates (the gaming machine tax
period),
(l) the amount applied by the club during the gaming
machine tax period to community development and
support under Part 4 of the Gaming Machine Tax
Act 2001.
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Schedule 1 Amendments
(2) For the purposes of subsection (1) (f), a registered club is to
make all reasonable inquiries to ascertain the name of any
employee of the club who is a close relative of a member of
the governing body of the club or of a top executive of the
club.
(3) In this section, reporting period means the relevant financial
year of the registered club in relation to which the information
is provided.
41I Exhibition on premises of registered club of certain
disclosures
(1) If a declaration is made at a meeting of the governing body of
a registered club under section 234 (1) of the Co-operatives
Act 1992 or section 41C of this Act, the registered club must
cause particulars of the declaration (including the name of the
member of the governing body who made the declaration and
the nature of the interest declared):
(a) to be exhibited in a conspicuous position on the
premises of the club within 48 hours after the
declaration is made, and
(b) to be so exhibited for a continuous period of not less
than 14 days.
(2) A registered club must, within 1 month after its annual
general meeting (the latest meeting), lodge with the secretary
of the Board a copy of all particulars required to be exhibited
in accordance with subsection (1) during the period
commencing on the day of the annual general meeting of the
club that last preceded the latest meeting and ending on the
day of the latest meeting.
Maximum penalty: 10 penalty units.
Division 4 Contracts with registered club
41J Disposal of land of registered club
(1) A registered club must not dispose of any land of the club
unless:
(a) the disposal has first been approved at a general
meeting of the ordinary members of the club at which a
majority of the votes cast supported the approval, and
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Amendments Schedule 1
(b) the disposal is by way of public auction or open tender
conducted by an independent real estate agent or
auctioneer (subject to the requirements of any other Act
or law), and
(c) in the case of a sale of land, the club has first obtained
a valuation of the land from an independent registered
real estate valuer within the meaning of the Valuers
Registration Act 1975.
(2) In this section, disposal of land by a registered club includes:
(a) the granting by the club of a lease or licence of the land,
or an easement over the land, for a period of more than
3 years (including any option to renew), or
(b) the granting by the club of an option to buy the land, or
(c) the termination by the club of a lease or licence held
over land by the club or the granting by the club of a
sublease or sublicence over land.
41K Contracts in which member of governing body or top executive
has interest
(1) A registered club must not enter into a contract with a member
of the governing body of the club or a top executive, or with
a company or other body in which such a member or top
executive has a pecuniary interest, unless the proposed
contract is first approved by the governing body of the club.
(2) Subsection (1) does not apply to a pecuniary interest if there
are guidelines prescribed by the regulations and in force under
section 41ZC at the time the relevant contract is entered into
that include provisions to the effect that pecuniary interests of
the type concerned are not pecuniary interests to which that
subsection applies.
(3) Before entering into a contract, a registered club must make
all reasonable inquiries to ensure that the provisions of
subsection (1) are not contravened.
(4) When making any such inquiries as to whether a party to the
proposed contract is or is not a person, company or body
referred to in subsection (1), a registered club is entitled to
rely on a statutory declaration from the party to the proposed
contract (or, in the case of a company or other body that is a
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Schedule 1 Amendments
party to the proposed contract, from the chief executive
officer of the company or body) that the party is or is not such
a person, company or body.
(5) This section is subject to sections 41L, 41M and 41N.
41L Contracts with secretary, manager, close relatives and others
(1) A registered club must not enter into a contract with any of the
following:
(a) the secretary of the club, a manager appointed under
section 34A for any premises of the club or any other
person prescribed by the regulations for the purposes of
this section,
(b) any close relative of a person referred to in paragraph
(a),
(c) a company or other body in which a person referred to
in paragraph (a) or (b) has a controlling interest.
(2) For the purposes of this section:
(a) a person referred to in subsection (1) (a) is taken to have
a controlling interest in a company or body if the
person's interest in the company or body, when added
to the interest in the company or body held by one or
more close relatives of the person, is a controlling
interest in the company or body, and
(b) a close relative of a person referred to in subsection (1)
(a) is taken to have a controlling interest in a company
or body if the relative's interest in the company or body,
when added to the interest in the company or body held
by any other close relative or relatives of the person, is
a controlling interest in the company or body.
(3) For the purposes of this section, a person has, or persons have,
a controlling interest in a company or body if the person has,
or persons have, the capacity to determine the outcome of
decisions about the financial and operating policies of the
company or body.
(4) Before entering into a contract, a registered club must make
all reasonable inquiries to ensure that the provisions of
subsection (1) are not contravened.
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Amendments Schedule 1
(5) When making any such inquiries as to whether a party to the
proposed contract is or is not a person, company or body
referred to in subsection (1), a registered club is entitled to
rely on a statutory declaration from the party to the proposed
contract (or, in the case of a company or other body that is a
party to the proposed contract, from the chief executive
officer of the company or body) that the party is or is not such
a person, company or body.
41M Remuneration of top executives
A registered club must not enter into a contract for the
remuneration by the club of a top executive of the club unless
the proposed contract has first been approved by the
governing body of the club.
41N Loans to members of governing body and employees
(1) A registered club must not lend money to a member of the
governing body of the club.
(2) A registered club must not lend money to an employee of the
club unless:
(a) the amount of the proposed loan (together with the
amount of any other loan to the employee by the club
that has not been repaid to the club) is $10,000 or less,
and
(b) the proposed loan has first been approved by the
governing body of the club.
(3) Subsection (2) (a) does not apply to any amount of money lent
to the employee in accordance with the terms and conditions
of the employee's contract of employment with the registered
club.
41O Controlled contracts
(1) In this section, controlled contract means:
(a) a contract referred to in section 41K, or
(b) any other contract to which a registered club is a party
that is prescribed by the regulations, or is of a class of
contracts prescribed by the regulations, for the purposes
of this section.
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Schedule 1 Amendments
(2) A controlled contract entered into by a club is taken to include
the terms and conditions (if any) prescribed by the regulations
in relation to the type of controlled contract concerned.
(3) A registered club must, within 14 days of entering into a
controlled contract, provide a copy of the contract to the
Director.
(4) This section does not extend to a contract entered into before
the commencement of this section.
41P General provisions
(1) Nothing in this Division (except section 41M), applies to the
following:
(a) a contract of remuneration of a member of the
governing body of a registered club as such a member,
(b) a contract of employment between a registered club and
an employee of the club,
(c) honorariums paid to members of the governing body of
a registered club or employees of a registered club.
(2) Nothing in this Division renders a contract void or illegal.
Division 5 Enforcement provisions
41Q Director may apply for orders in relation to disposal of land of
registered club
(1) If land of a registered club is disposed of otherwise than in
accordance with section 41J, the Director may make an
application to the Supreme Court for an order in relation to the
disposition of the land.
(2) In determining an application under subsection (1), the
Supreme Court may make such of the following orders as it
thinks fit if it is of the opinion that the disposal of the land has
not been generally to the benefit of the members of the
registered club:
(a) an order declaring a contract for the disposal of the land
void,
(b) where the land had been owned by the club when it was
disposed of, an order directing that the land be
transferred back to the registered club,
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Amendments Schedule 1
(c) an order directing the payment of an amount or a further
amount in relation to the disposal of the land by the
person to whom the club disposed of the land or any
person who benefited from the disposal of the land,
(d) such other orders as the Supreme Court considers
necessary or appropriate in the circumstances.
(3) The Supreme Court is not to make an order under this section
that, in the opinion of the Supreme Court:
(a) would unfairly and materially prejudice an interest or
right of a person who acted in good faith and with no
reasonable grounds to suspect that the disposal of the
land concerned was in contravention of this Act, or
(b) would result in the extinguishment of an interest in the
land (without proper compensation) held by a person
who had no knowledge that the land had been disposed
of in contravention of this Act or no means of
preventing the disposal of the land.
41R Termination of certain contracts
(1) This section applies to the following contracts (other than a
contract for the disposal of land of a registered club):
(a) a contract that was entered into by a registered club in
contravention of a provision of Division 4,
(b) a contract that is subject to a term or condition
prescribed by the regulations referred to in section 41O
if a party to the contract is failing, or has failed, to
comply with the term or condition.
(2) If the Director is of the opinion that a contract is a contract to
which this section applies, the Director may serve on each
party to the contract a notice in writing affording the party an
opportunity to show cause within 14 days why the contract
should not be terminated.
(3) The notice is to specify the provision of Division 4 that the
Director considers has been contravened or the term or
condition of the contract that the Director considers is not
being, or has not been, complied with.
(4) A party to the contract may, within the period specified in the
notice, arrange with the Director for the making of
submissions as to why the contract should not be terminated.
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(5) After considering any submissions so made, the Director may,
by notice in writing served on each party to the contract,
declare that the contract will be terminated on a day specified
in the notice.
(6) A contract the subject of a notice under subsection (5) is
terminated by force of this section at and from the date
specified in the notice for the termination of the contract.
(7) The Director is not to issue a notice under subsection (5) if the
Director considers that the registered club concerned may be
affected adversely by the termination of the contract.
(8) The Director may take action under this section in relation to
a contract whether or not proceedings have been instituted
against any person with respect to the purported contravention
of Division 4, or purported failure to comply with a term or
condition of the contract, that the Director believes is the
ground for taking the action.
(9) This section extends to a contract entered into by a registered
club before the commencement of this section if the club
would have contravened a provision of Division 4 by entering
into the contract after that commencement and so extends as
if the contract was entered into in contravention of the
provision.
41S Effect of termination
If a contract is terminated in accordance with this Division:
(a) the termination does not affect a right acquired, or a
liability incurred, before that termination by a person
who was a party to the contract, as a result of the
performance before that termination of any obligation
imposed by the contract, and
(b) no liability for breach of contract is incurred by a person
who was a party to the contract by reason only of that
termination, and
(c) neither the Crown nor the Director incurs any liability
by reason of that termination.
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41T Offence of giving effect to terminated contract
Subject to section 41S (a), a party to a contract terminated in
accordance with this Division must not give any further effect
to any part of the contract.
Maximum penalty: 20 penalty units.
41U Notification to top executives and defence
(1) When a person becomes a top executive of a registered club,
the registered club must, as soon as practicable, give written
notice to the person informing the person that he or she is a
top executive and has responsibilities under this Part.
(2) It is a defence to a prosecution for an offence against section
41D or 41E (1) in respect of a person who is a top executive
of a registered club if the person establishes that at the time
the offence was committed:
(a) the person had not received a notice under subsection
(1) from the club, and
(b) the person could not reasonably have been expected to
know that he or she was a top executive of the club
without having received such a notice.
41V Offences by secretary and members of governing body of
registered club in relation to contracts
If a registered club contravenes, whether by act or omission,
any provision of Division 4 or section 41U (1), the club is not
guilty of an offence but each person who is the secretary of the
club, a member of the governing body of the club or a close
associate of the club is guilty of an offence punishable on
conviction by a maximum penalty of 100 penalty units unless
the person satisfies the court that:
(a) the club contravened the provision without the
knowledge actual, imputed or constructive of the
person, or
(b) the person was not in a position to influence the conduct
of the club in relation to its contravention of the
provision, or
(c) the person, if in such a position, used all due diligence
to prevent the contravention by the club.
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Division 6 Inquiries in relation to registered clubs
41W Definition
In this Division:
inquiry means an inquiry that is held under section 41X.
41X Inquiry may be held
(1) For the purposes of investigating an allegation about any
corrupt or other improper conduct in relation to a registered
club, the Director may arrange for the holding of an inquiry to
be presided over by a person appointed by the Director.
(2) The Director is to determine the following:
(a) the matters that are to be the subject of an inquiry,
(b) the procedures to be adopted at an inquiry (including
whether the inquiry is to be held in public or in private),
(c) the time within which the person presiding at the
inquiry is required to report to the Director on the
findings of an inquiry.
(3) The matters that may be the subject of an inquiry may include
matters relating to the termination of employment of members
of staff of a registered club.
(4) Evidence may be taken on oath or affirmation at an inquiry,
and for that purpose:
(a) the person presiding at the inquiry may require a person
appearing at the inquiry who wishes to give evidence to
take an oath or to make an affirmation in a form
approved by the person presiding, and
(b) a member of staff of the Department of Gaming and
Racing may administer an oath or affirmation to a
person so appearing at the inquiry.
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(5) The person presiding at an inquiry is not bound by the rules or
practice of evidence and may inform himself or herself on any
matter in such manner as the person considers appropriate.
41Y Nature of inquiry
(1) The person presiding at an inquiry:
(a) has the powers, authorities, protections and immunities
conferred on a commissioner by Division 1 of Part 2 of
the Royal Commissions Act 1923, and
(b) if the person is a Judge of the Supreme Court, or is a
legal practitioner of at least 7 years' standing whose
instrument of appointment to preside at the inquiry
expressly so provides, has the powers and authorities
conferred on a commissioner by Division 2 of Part 2 of
the Royal Commissions Act 1923 (except for section
17 (4) and (5)).
(2) The Royal Commissions Act 1923 applies to any witness
summoned by or before the person presiding at an inquiry
(except for section 13 and, subject to subsection (1) (b),
Division 2 of Part 2).
41Z Findings of inquiry and referral of certain matters
(1) The person presiding at an inquiry is required to report to the
Director on the findings of the inquiry (including any
information obtained in the course of the inquiry).
(2) If the Director is satisfied that any matter contained in the
report:
(a) relates or may relate to a breach of a law of the State
(including this Act) or of another State or Territory or
the Commonwealth, or
(b) constitutes or may constitute grounds for taking
proceedings of any kind (including a complaint under
this or any other Act) against a registered club,
the Director may refer the matter to a law enforcement agency
or to any other person or body who may have an interest in the
matter.
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(3) In this section:
law enforcement agency has the same meaning as in
section 12A of the Royal Commissions Act 1923.
41ZA Orders in relation to registered clubs
(1) The Director may, if satisfied that the findings of an inquiry
justify doing so, make either or both of the following orders:
(a) an order requiring the registered club that is the subject
of the inquiry to provide each member of the club with
information about the findings of the inquiry within
such time as is specified in the order,
(b) an order requiring the club to hold an election of the
governing body of the club within such time as is
specified in the order.
(2) A registered club must comply with any such order.
Maximum penalty: 100 penalty units.
(3) An order under this section has effect despite any other
provision of this Act or the rules of the registered club
concerned.
Division 7 Ancillary provisions
41ZB Regulations for purposes of Part
The regulations may make provision for or with respect to the
following:
(a) the period to which a return under section 41F is to
relate and the form and manner of making any such
return,
(b) the method of determining the value of a gift for the
purposes of Division 2,
(c) exemptions from any of the provisions of this Part.
41ZC Guidelines
(1) The regulations may prescribe guidelines for or with respect
to determining what constitutes an interest to be declared
under section 41C (1), a gift to be disclosed under section 41F
(1) or a pecuniary interest to which section 41K (1) applies.
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(2) The Minister is to ensure that consultation with the registered
clubs industry is undertaken when any proposals for
prescribing guidelines referred to in this section are being
developed.
[10] Schedule 2, heading
Omit the heading. Insert instead:
Schedule 2 Savings, transitional and other
provisions
[11] Schedule 2, clause 1A
Insert at the end of clause 1A (1):
Registered Clubs Amendment Act 2003
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