Maintain current memorial. Upon the first passage of the Act (1888) and upon each election of a new chairman, the secretary must within one calendar month prepare a memorial in the form set out in the Schedule, have it signed by the chairman, swear an oath before a justice of the peace or commissioner for affidavits, and file it in the Supreme Court of New South Wales (s 10). Production of an office copy of the most recent memorial is prima facie evidence of the chairman’s identity. The club should keep certified copies on hand for use in litigation and property transactions.
Do not sue before filing. No action may be brought in the chairman’s name until the initial memorial is recorded (s 11). This means the club should ensure the memorial is recorded immediately after the Act’s passage, and thereafter within one month of each new chairman. A delay could be fatal if the club needs urgent court orders.
Follow the two-meeting rule for rule changes. Any change to the club’s rules must go through two meetings. First, a special general meeting (called by the committee, or upon requisition of ten members) with at least 30 members present. At that meeting the changes are considered, and may be approved, rejected, or amended by majority (s 4). Then the chairman must call a second special general meeting between three and five weeks later. At the second meeting the rules as approved at the first meeting are put separately for confirmation or rejection; no amendments are allowed (s 5). Only those changes confirmed by a majority become binding. The club should record the minutes of both meetings and maintain a record of which members were present.
Notify members of resignation right. At the confirmation meeting, the club should inform members that any member who disapproves of a change may resign within one calendar month and be relieved of new liabilities (s 5 proviso). The club should have a standard resignation form available.
Obtain member consent for major transactions. Before the committee borrows money, mortgages club property, sells or leases club land, purchases or leases land, erects buildings, makes “considerable” improvements, or makes “considerable” investments, it must obtain the approval of a majority of a special general meeting called to consider that specific transaction (ss 6 and 7). The club should define “considerable” in its rules to avoid disputes. The resolution should record the specific amount, the counterparty, and the terms. The committee should obtain legal advice confirming the consent was validly given.
Document property vesting. All club property is automatically vested in the chairman as corporation sole (s 8). For Torrens title land, the club should ensure that the title records the chairman as proprietor in his official capacity, and that the Registrar-General is informed of the statutory vesting. For personal property, the chairman should sign any necessary assignments or transfers to perfect legal title.
Litigate correctly. All proceedings by or against the club must be brought in the name of the chairman (s 9). A plaintiff suing the club should name “The Chairman of Tattersall’s Club” (with the current chairman’s name) as defendant. The club, when suing, should name the chairman as plaintiff. The club should instruct lawyers accordingly. A judgment against the chairman is enforceable against club property (s 12). The club should notify its insurers and indemnify the chairman against personal liability arising from such proceedings.
Invest only within the statutory power. The committee may invest in bank deposits, government securities (Australian), or mortgages on Sydney real property (s 7). Any other investment requires a special general meeting consent. The club should review its investment policy to ensure it falls within s 7 or has member approval.
Review the club’s rules for consistency. The Act overrides any inconsistent rules. The club should periodically check that its rules do not purport to dispense with the two-meeting requirement, the member vote on major transactions, or the memorial recording, because any rule inconsistent with the Act is void (ss 4 and 8). The club should also ensure its rules define the calling of special general meetings, which the Act deliberately leaves to the rules.