New South Wales Consolidated Acts

REGISTERED CLUBS ACT 1976 - SECT 41L

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 the Liquor Act 2007 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.

(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.