Maintain the memorial. The most immediate compliance obligation is under s 10. The secretary must ensure that the chairman’s memorial is recorded in the Supreme Court within one month of each election. The club should keep a certified copy of the latest memorial on file. The secretary should calendar the one month deadline whenever a new chairman takes office. The memorial form is in the Schedule, and the oath must be taken before a justice of the peace or commissioner for affidavits. The club should also ensure that the first memorial (if this is a new club under the Act, which it is not, but for completeness) is recorded before any legal proceeding is brought.
Monitor CPI annually. On 1 January each year, the club must calculate the adjusted thresholds for ss 6 and 7. The adjustment is based on the annual percentage increase in the Consumer Price Index (All Groups Index) for Sydney. The club should obtain the relevant index number from the Australian Bureau of Statistics. If the index increased from the previous year, apply that percentage to the current thresholds. The base amounts are $1,500,000 and $5,500,000, but over time they have increased. The club should maintain a register of the current adjusted amounts and use them for all committee decisions. The calculation should be documented.
Obtain member consent for large transactions. Before entering into any borrowing, sale, lease, expenditure, or investment that exceeds $1,500,000 (as adjusted) in a single transaction or contract, the committee must call a special general meeting and obtain majority consent. Similarly, before increasing the club’s total interest bearing liabilities above $5,500,000 (as adjusted), a special general meeting is required. The club should establish a policy that the committee will not approve any transaction that reaches 80% of the threshold without first assessing whether consent is needed. Minutes of the special general meeting should record the resolution and the amount approved.
Follow the rule change procedure exactly. If the club wishes to adopt, repeal, or amend any rule, it must follow ss 3-5. Step one: the committee calls a meeting (or on requisition of ten members) with at least one month notice. Step two: at the meeting, at least thirty members must be present; proposed changes can be amended and approved by majority. Step three: the chairman convenes a second meeting (same notice and quorum requirements) for confirmation only. No amendments allowed. Each change is voted separately. Step four: if confirmed by majority, the changes become effective. Step five: notify members that they have one month to resign to avoid new liabilities. The club should keep detailed minutes of both meetings and record the resignation period.
Keep proper records of all property. Because all property vests in the chairman individually (s 8), the club should maintain an asset register that clearly identifies which assets are club property. This is important for three reasons: (a) to ensure that the chairman’s personal assets are not confused with club assets in a judgment enforcement under s 12; (b) to facilitate a smooth transfer to incorporation under s 13; and (c) to allow the committee to control the use and disposal of property. The register should include land titles, chattel descriptions, and bank accounts held in the chairman’s name.
Plan for incorporation. The Act expires on proclamation after the club incorporates. The club should consider whether to continue under this Act indefinitely or to incorporate under another Act. If it chooses to incorporate, it should do so under a suitable Act (e.g., Corporations Act as a company limited by guarantee, or the Associations Incorporation Act 2009 (NSW)). Once incorporated, the club should notify the NSW Government to trigger the proclamation under s 13. Until then, the club must continue to comply with the 1912 Act. If the club does not incorporate, it must live with the constraints of the Act, including the transaction thresholds and the rule change procedure.
Indemnify the chairman. Since the chairman holds legal title and is the nominal party in suits, the club should provide a written indemnity to the chairman for any liabilities incurred in the proper performance of his duties under the Act. This is not required by the Act but is prudent risk management. The club should also consider directors and officers insurance for committee members, as they make decisions on borrowing and expenditure.
Review the club’s own rules. The club’s existing rules remain in force under s 3, but they must not be inconsistent with the Act. The club should periodically review its rules to ensure consistency with the Act, especially regarding the calling of meetings, quorum requirements, and the powers of the committee. If inconsistencies exist, the rules should be amended using the procedure in ss 4-5.