10Requirements to be met by clubs

#### 10 Requirements to be met by clubs 10 Requirements to be met by clubs > > (1) The following requirements apply in relation to a club— > > > > > (a) The club shall be conducted in good faith as a club. > > > > > (b) The club shall be— > > > > > > > (i) a company within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, or > > > > > > > (ii) if the club was registered, or applied for registration, before the commencement of Part 10—a co-operative under the [Co-operatives Act 1992](/view/html/repealed/current/act-1992-018) or a corporation constituted by another Act. > > > > > (c) (Repealed) > > > > > (d) The membership of the club shall consist of or include not less than such number of ordinary members as is prescribed in respect of it by section 12. > > > > > (e) The club shall be established— > > > > > > > (i) for social, literary, political, sporting or athletic purposes or for any other lawful purposes, and > > > > > > > (ii) for the purpose of providing accommodation for its members and their guests. > > > > > (e1) If the regulations prescribe objects that are to apply in relation to specified types of clubs, the club is, if it is of such a type, to have the objects so prescribed in relation to that type of club. > > > > > (f) The club shall have premises of which it is the bona fide occupier for the purposes of the club and which are provided and maintained from the funds of the club. > > > > > (g) The premises of the club shall contain accommodation appropriate for the purposes of the club. > > > > > (h) The premises of the club shall contain a properly constructed bar room but shall not contain a separate area for the sale or supply of liquor to be carried away from those premises to which area there is direct access from outside any building that is part of those premises. > > > > > (i) A member of the club, whether or not he or she is a member of the governing body, or of any committee, of the club, shall not be entitled, under the rules of the club or otherwise, to derive, directly or indirectly, any profit, benefit or advantage from the club that is not offered equally to every full member of the club. > > > > > (j) Only the club and its members are to be entitled under the rules of the club or otherwise to derive, directly or indirectly, any profit, benefit or advantage from the ownership or occupation of the premises of the club unless the profit, benefit or advantage is in the form of— > > > > > > > (i) reasonable and proper interest paid to a lender on any loan made to the club that is secured against the premises of the club, or > > > > > > > (ii) reasonable and proper rent or occupation fees paid to the owner of the premises of the club, > > > > > > being, in either case, a payment arising out of dealings reasonably carried out, or contracts reasonably made, with the club in the ordinary course of its lawful business. > > > > > (k) The secretary or manager, or any employee, or a member of the governing body or of any committee, of the club is not entitled to receive, either directly or indirectly, any payment calculated by reference to— > > > > > > > (i) the quantity of liquor purchased, supplied, sold or disposed of by the club or the receipts of the club for any liquor supplied or disposed of by the club, or > > > > > > > (ii) the keeping or operation of approved gaming machines in the club. > > > > > (k1) The membership of the governing body of the club must not, on and from such date (or the happening of such event) as may be prescribed by the regulations, exceed 9 persons. > > > > > (l) The club must comply with any requirements imposed on the club under section 38. > > > > > (m) The club must comply with any requirements imposed on the club by or under Part 4A. > > > > > (n) The business conducted on the premises of the club must not be managed or controlled by any person or body other than— > > > > > > > (i) the governing body of the club, or > > > > > > > (ii) the secretary of the club, or > > > > > > > (iii) the manager (within the meaning of the [Liquor Act 2007](/view/html/inforce/current/act-2007-090)) of the club premises, or > > > > > > > (iv) a person acting in a capacity referred to in section 41 (1) in respect of the club, or > > > > > > > (v) a person appointed under section 41A in respect of the club, or > > > > > > > (vi) a person who is exercising functions relating to the management of the business or affairs of the club under a management contract entered into in accordance with the Registered Clubs Accountability Code. > > > (2) For the purposes of determining whether a club is being conducted in good faith as a club, as required by subsection (1) (a), regard is to be had to the following— > > > > > (a) the nature of the premises of the club, > > > > > (b) whether the club has been under administration for an extended period of time (whether as an externally-administered body corporate, within the meaning of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, or otherwise), > > > > > (c) whether any arrangements relating to the club have resulted in another person or body assuming the effective control of the club and its business, > > > > > (d) such other matters as may be prescribed by the regulations. > > > (3) Subsection (1) (b) does not apply in respect of Tattersall’s Club referred to in the [Tattersall’s Club Act of 1888](/view/html/inforce/current/act-1888-tca), City Tattersall’s Club referred to in the [City Tattersall’s Club Act of 1912](/view/html/inforce/current/act-1912-ctc), Newcastle Tattersall’s Club referred to in the Newcastle Tattersall’s Club Act 1945, the Newcastle International Sports Centre Club referred to in clause 9 of Schedule 5 to the [Sporting Venues Authorities Act 2008](/view/html/inforce/current/act-2008-065) or in respect of any club declared under section 13 (1) (a) to be an exempt club for the purposes of this subsection. > > > (4) (Repealed) > > > (5) Subsection (1) (e) (ii) does not apply in respect of any club declared under section 13 (1) (b) to be an exempt club for the purposes of this subsection. > > > (6) A club does not fail to meet the requirement specified in subsection (1) (i) or (1) (j) by reason only that a member of the club derives or is entitled to derive any profit, benefit or advantage from the club that is not offered equally to every full member of the club if— > > > > > (a) the member derives or is entitled to derive the profit, benefit or advantage, not being a profit, benefit or advantage referred to in paragraph (b), pursuant to a contract (including a contract of employment) or agreement with the club and the deriving of or entitlement to the profit, benefit or advantage is, in the opinion of the Authority, reasonable in the circumstances of the case, or > > > > > (b) the profit, benefit or advantage consists only of a sum of money paid to the member in respect of his or her services as a member of the governing body or of any committee of the club and that payment has been approved by a resolution passed at a general meeting on which the persons entitled to vote are the same as the persons entitled to vote at the annual election of the governing body of the club, or > > > > > (c) the profit, benefit or advantage consists only of hospitality in the nature of reasonable food or refreshment offered by the holder of a dealer’s licence or adviser’s licence (within the meaning of the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127)) in the normal course of a sale of an approved gaming machine on the licensee’s premises, or at a display of an approved gaming machine that is held anywhere in the State for the purpose of directly promoting the products or services of the licensee, or > > > > > (d) the profit, benefit or advantage consists only of the payment of out-of-pocket expenses that are of a kind authorised by a current resolution of the governing body and are reasonably incurred by a member of the club, or by the secretary or any other employee, in the course of carrying out his or her duties in relation to the club. > > > (6A) Subsection (1) (i) does not prevent a club from providing different benefits for different classes of members if— > > > > > (a) the different benefit was being lawfully provided immediately before the commencement of this subsection, or > > > > > (b) the different benefit is not in the form of money or a cheque or promissory note and is the subject of a current authorisation given by a general meeting of the members prior to the benefit being provided. > > > (7) A club does not fail to meet the requirement specified in subsection (1) (j) by reason only that a person derives or is entitled to derive any profit, benefit or advantage as referred to in subsection (1) (j) if, in the opinion of the Authority, the deriving of or entitlement to the profit, benefit or advantage is reasonable in the circumstances of the case. > > **s 10:** Am 1981 No 123, Sch 8; 1982 No 149, Sch 9; 1986 No 78, Sch 2 (1); 1990 No 29, Sch 3 (3); 1993 No 29, Sch 5 (4); 1994 No 50, Sch 1 (2); 2001 No 34, Sch 4.51 \[1\]; 2001 No 127, Sch 3 \[10\]–\[13\]; 2002 No 102, Sch 2 \[1\]–\[3\]; 2003 No 93, Sch 1 \[1\]; 2006 No 103, Sch 1 \[1\]; 2007 No 92, Sch 2 \[7\]–\[9\]; 2008 No 65, Sch 6.4 \[1\]; 2009 No 72, Sch 2 \[1\]–\[3\]; 2011 No 72, Sch 1 \[8\]–\[13\]; 2018 No 10, Sch 1 \[3\] \[4\].