Part 2 Club requirements, amalgamations, de-amalgamations and certain authorities
Division 1 General requirements
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 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of Part 10—a co-operative under the Co-operatives Act 1992 or a corporation constituted by another Act.(c) (Repealed)(d) The membership of the club shall consist of or include not less than such number of ordinary members as is prescribed in respect of it by section 12.(e)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 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) 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 within the meaning of section 41O.(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 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, City Tattersall’s Club referred to in the City Tattersall’s Club Act of 1912, 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 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) 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.
12 Calculation of minimum number of ordinary members
For the purposes of section 10 (1) (d), the number of ordinary members prescribed in respect of a club:(a) whose premises are situated within a radius of 24 kilometres from the General Post Office in Sydney is:(i) in a case where a certificate of registration under the Liquor Act 1912 in respect of the club was in force immediately before the commencement of the Liquor (Amendment) Act 1954—sixty, or(ii) in any other case—200 or such lesser number, not being less than 60, as the Authority may in special circumstances determine in respect of the club, or(b) whose premises are situated elsewhere, is:(i) in a case where a certificate of registration under the Liquor Act 1912 was in force immediately before the commencement of the Liquor (Amendment) Act 1954—thirty, or(ii) in any other case—100 or such lesser number, not being less than 30, as the Authority may in special circumstances determine in respect of the club.
(1) The Governor may, by order published in the Gazette:(a) declare any club to be an exempt club for the purposes of section 10 (3), or(b) declare any club to be an exempt club for the purposes of section 10 (5) if:(i) the purposes, referred to in section 10 (1) (e) (i), for which the club is established are primarily athletic purposes, and(ii) the management of the club is vested in trustees appointed by the Governor.(2) The trustees of any club declared under subsection (1) (b) to be an exempt club shall, for the purposes of this Act, be deemed to be the governing body of the club.
Division 1A Provisions relating to club amalgamations
(1) 2 or more registered clubs may amalgamate in accordance with this Division.(2) An amalgamation of 2 or more registered clubs:(a) is effected by:(i) the dissolution of each of those clubs and the formation of a new club that owns or occupies the same premises (or part of the same premises) of at least one of the dissolved clubs, and(ii) the transfer, under section 60 of the Liquor Act 2007, to the new club of the club licence or licences held by the dissolved club or clubs in respect of those premises, or(b) is effected by:(i) the continuation of one of those clubs and the dissolution of the other club or clubs, and(ii) the transfer, under section 60 of the Liquor Act 2007, of the club licence held by each of those dissolved clubs to the continuing club.Note. Under section 60 (6) of the Liquor Act 2007 the club licence held by a dissolved club may be transferred to the parent (or amalgamated) club only if the Authority is satisfied that the requirements of this Division have been complied with.(3) This Division (including any regulations made in relation to club amalgamations) extends, with such modifications as are necessary, to a proposed amalgamation in which one of the parties involved comprises those members of an amalgamated club who represent the interests of a proposed de-amalgamated club (being a club that is to result from a de-amalgamation under Division 1B). Accordingly, a reference in this Division (and in any such regulation) to a registered club includes a reference to a proposed de-amalgamated club and the members of that proposed de-amalgamated club are taken to be the members of the amalgamated club before the de-amalgamation.
(1) In this Division:dissolved club, in relation to the amalgamation or proposed amalgamation of 2 or more registered clubs, means the club whose club licence is, or is to be, transferred under section 60 of the Liquor Act 2007 to another registered club.
main premises of a parent club means the premises that are, in the opinion of the Authority, the main premises of the club.
parent club, in relation to the amalgamation or proposed amalgamation of 2 or more registered clubs, means the registered club to which the club licence of another club is, or is to be, transferred under section 60 of the Liquor Act 2007.
same area, in relation to the amalgamation or proposed amalgamation of 2 or more registered clubs, means the area within a radius of 50 kilometres of the main premises of the parent club.
(2) Before any 2 or more registered clubs amalgamate, the parent club must, under its rules, establish the members of the dissolved club as a separate class of members. Such members are to be identified by the parent club as, and are referred to in this Division and in Division 1B as, the members of the dissolved club.
17AE Club members to be notified of proposed amalgamation
(1) (Repealed)(2) A registered club that is a party to a proposed amalgamation must, in accordance with the regulations, notify its members of the proposed amalgamation.(3), (4) (Repealed)
17AEA Submissions in relation to club amalgamations
(1) Any person may, subject to and in accordance with the regulations, make a written submission to the Authority in relation to a proposed amalgamation under this Division.(2) If any such submission is made to the Authority, the Authority is to take the submission into consideration before deciding whether or not to approve the transfer of the licence of the dissolved club under section 60 of the Liquor Act 2007.
17AEB Other matters to be considered in relation to club amalgamations
Without limiting section 60 of the Liquor Act 2007, the Authority may not approve of the transfer of the licence of a dissolved club under that Act unless the Authority is satisfied that:(a) the parent club will meet the requirements set out in section 10 (1), and(b) the parent club will be financially viable, and(c) the proposed amalgamation is in the interests of the members of each of the clubs that are amalgamating, and(d) the proposed amalgamation has been approved in principle at separate extraordinary general meetings of the ordinary members of each of the clubs proposing to amalgamate.
17AF General limit of 10 amalgamations per club
(1) A registered club (including a club that has already been formed by, or continued as the result of, an amalgamation) may amalgamate with a total of no more than 10 other registered clubs over any period of time.(2)–(4) (Repealed)(5) For the purposes of this section, the number of amalgamations in respect of a registered club over any period of time includes any amalgamations involving the club that were effected before the commencement of this Division.
17AH Clubs allowed to amalgamate if situated in same area only
(1) 2 or more registered clubs may amalgamate only if the clubs to be amalgamated are situated in the same area.(2) However, if in relation to a proposed amalgamation, the Authority is satisfied that the dissolved club:(a) is not able to amalgamate with another club in the same area, the Authority may, subject to this Division, allow the dissolved club to amalgamate with another club that is not situated in the same area but which has similar objects and activities as the dissolved club, or(b) is not able to amalgamate with another club in the same area, or with another club having similar objects and activities as the dissolved club, the Authority may, subject to this Division, allow the dissolved club to amalgamate with any other club.
17AI Major assets of dissolved club to be kept intact
(1) During the period of 3 years following the amalgamation of 2 or more registered clubs, the parent club must not dispose of any of the major assets of the dissolved club unless the disposal has been approved by the Authority.Maximum penalty: 100 penalty units.
(2) The Authority may approve of the disposal of any of the major assets of the dissolved club only if the Authority is satisfied that:(a) the disposal is necessary to ensure the financial viability of the parent club, and(b) a majority of the members of the dissolved club have approved of the disposal.(3) In this section:major assets of a dissolved club means assets that are of a class prescribed by the regulations.
Division 1B Provisions relating to club de-amalgamations
(1) An amalgamated club may de-amalgamate in accordance with this Division.(2) The de-amalgamation of an amalgamated club is effected by:(a) the formation of a new registered club (referred to in this Division as the de-amalgamated club), and(b) the transfer to the de-amalgamated club of the title to (or of the right to occupy) the premises (or any part of the premises) that were, immediately before the amalgamation with the parent club, owned or occupied by the dissolved club (referred to in this Division as the relevant premises), and(c) the transfer to the de-amalgamated club, under section 60 of the Liquor Act 2007, of the club licence held by the amalgamated club in respect of the relevant premises.Note. Under section 60 (6) of the Liquor Act 2007 the club licence held by the amalgamated club for the relevant premises may be transferred to the de-amalgamated club only if the Authority is satisfied that the requirements of this Division have been complied with.(3) In this Division:dissolved club and parent club have the same meanings as in Division 1A.
(4) For the purposes of this Division, the members of the dissolved club include any person who, following the amalgamation, has become a member of the amalgamated club but only in relation to the relevant premises.
17AK Notification of proposed de-amalgamation and making of submissions
(1) If an amalgamated club is proposing to de-amalgamate, the club must, in accordance with the regulations, notify its members of the proposed de-amalgamation.(2) Any person may, subject to and in accordance with the regulations, make a written submission to the Authority in relation to a proposed de-amalgamation under this Division.(3) If any such submission is made to the Authority, the Authority is to take the submission into consideration before deciding whether or not to approve the transfer under section 60 of the Liquor Act 2007 to the de-amalgamated club of the licence held by the parent club in respect of the relevant premises.
17AL Statement relating to proposed de-amalgamation
(1) If an amalgamated club is proposing to de-amalgamate, the club must prepare a statement containing the information required by the regulations in relation to the proposed de-amalgamation.(2) Any such statement must be made available in the manner required by the regulations.
17AM Other matters to be considered in relation to club de-amalgamations
Without limiting section 60 of the Liquor Act 2007, the Authority may not approve the transfer to the de-amalgamated club of the licence held by the parent club in respect of the relevant premises unless the Authority is satisfied that:(a) the de-amalgamated club will meet the requirements set out in section 10 (1), and(b) the de-amalgamated club will be financially viable, and(c) the proposed de-amalgamation is in the interests of the members of the parent club and the dissolved club, and(d) the proposed de-amalgamation has been approved in principle at separate extraordinary general meetings of the ordinary members of the parent club and the members of the dissolved club.
17AN Membership of de-amalgamated club
(1) Without limiting any other provision of this Act relating to the membership of registered clubs, the membership of a de-amalgamated club is, subject to the regulations, taken to include the members of the dissolved club who have continued to be members of the parent club up until the time the de-amalgamation takes effect.(2) Any such members of the dissolved club are, on becoming members of the de-amalgamated club, entitled to continue as members of the parent club.
17AO Transfer of relevant premises to de-amalgamated club
Despite section 41J (3) (c), the transfer by an amalgamated club of the relevant premises to the de-amalgamated club may be effected by means of private treaty.
Division 2 Certain authorisations in relation to clubs
(1) The Authority may, on application by or on behalf of a registered club, grant an authorisation (a non-restricted area authorisation) to the club specifying a part or parts of the premises of the club as a non-restricted area.(2) A registered club and the secretary of the club are each guilty of an offence if any conditions of a non-restricted area authorisation held by the club are contravened.Maximum penalty: 20 penalty units in the case of the registered club and 10 penalty units in the case of the secretary.
Note. Section 23A makes provision for the conditions to which a non-restricted area authorisation is subject.
22A Access to club premises by junior members
(1) The Authority may, on application by or on behalf of a registered club, grant an authorisation (a junior members authorisation) to allow members of the club who are under the age of 18 years access to areas of the club premises that would otherwise be restricted to those members, but only for the purpose of taking part in sporting activities or a prize-giving ceremony associated with sporting activities.(2) Without limiting the conditions that may be imposed by the Authority under section 23A in relation to a junior members authorisation, any such conditions may relate to the following:(a) the required level of adult supervision of members under the age of 18 years using the premises of the club under the authorisation,(b) the establishment of, and the manner of keeping, a register to be signed by members under the age of 18 years each time they use the premises of the club under the authorisation and by each adult supervising them,(c) the steps that the club must take to ensure that liquor is not sold or supplied to persons under the age of 18 years using the premises of the club under the authorisation,(d) the steps that the club must take to ensure that approved gaming machines are not used by persons under the age of 18 years using the premises of the club under the authorisation.(3) It is a condition of a junior members authorisation that tobacco vending machines must be unable to be operated while members under the age of 18 years are using the premises of the club under the authorisation.(4) A registered club and the secretary of the club are each guilty of an offence if any conditions of a junior members authorisation held by the club are contravened.Maximum penalty: 20 penalty units in the case of the registered club and 10 penalty units in the case of the secretary.
Note. Section 23A also makes provision for the conditions to which a junior members authorisation is subject.
(1) The Authority may, on application by or on behalf of a registered club, grant an authorisation (a club functions authorisation) to the club to permit persons:(a) who are not members of the club, or(b) who are under the age of 18 years,to attend, in a specified part of the club premises, functions of a cultural, educational, religious, patriotic, professional, charitable, political, literary, sporting, athletic, industrial or community nature. Any such function may include a wedding.(2) A club functions authorisation is to designate function areas (that is, each part of the club premises on which the functions concerned are permitted to be held) and access areas (that is, each part of the club premises through or by means of which persons attending those functions are to be permitted to obtain entry to or to depart from a function area).(3) A club functions authorisation is subject to the following conditions, but only to the extent that it authorises functions for minors on the club premises:(a) at least 7 days notice must be given to the local police before any function is held,(b) the notice must specify the name and nature of the function, the number of minors attending, the number of adult supervisors, details of the security arrangements and such other particulars as may be prescribed by the regulations,(c) the secretary of the club and person conducting the function must comply with any directions given by the local police or the Authority with respect to the conduct of functions for minors,(d) liquor must not be sold, supplied, disposed of or consumed in the area in which any function is held,(e) gaming machines must not be located in the area in which any function is held and any area of the club in which gaming machines are located must not be accessible to any minor attending the function,(f) such other conditions as may be prescribed by the regulations.Note. Section 23A also makes provision for the conditions to which a club functions authorisation is subject.(4) A registered club and the secretary of the club are each guilty of an offence if:(a) any conditions of a club functions authorisation held by the club are contravened, or(b) a function is held pursuant to the club functions authorisation otherwise than in accordance with the approval of the governing body of the club.Maximum penalty: 20 penalty units in the case of the registered club and 10 penalty units in the case of the secretary.
(5) It is a defence to a prosecution of a secretary of a club for an offence under subsection (4) if it is proved that:(a) the secretary had taken all reasonable precautions to avoid commission of the alleged offence, and(b) at the time of the alleged offence the secretary did not know, and could not reasonably be expected to have known, that the alleged offence had been committed.
23A General provisions applying to authorisations
(1) This section applies to the following authorisations:(a) a non-restricted area authorisation,(b) a junior members authorisation,(c) a club functions authorisation.(2) An application for an authorisation must:(a) be in the form and manner approved by the Authority, and(b) be accompanied by the fee prescribed by the regulations and such information and particulars as may be prescribed by the regulations, and(c) if required by the regulations to be advertised—be advertised in accordance with the regulations, and(d) comply with such other requirements as may be approved by the Authority or prescribed by the regulations.(3) In determining an application for an authorisation, the Authority has the same powers in relation to the application as the Authority has under the Liquor Act 2007 in relation to an application for a licence under that Act.(4) If, before an application for an authorisation is determined by the Authority, a change occurs in the information provided in, or in connection with, the application (including information provided under this subsection), the applicant must immediately notify the Authority of the particulars of the change.Maximum penalty: 20 penalty units.
(5) Any person may, subject to and in accordance with the regulations, make a submission to the Authority in relation to an application for an authorisation.(6) If any such submission is made to the Authority, the Authority is to take the submission into consideration before deciding whether or not to grant the authorisation.(7) The regulations may prescribe, or provide for the determination of, a fee in respect of the granting of an authorisation. If any such fee is prescribed or determined, the authorisation does not take effect until the fee has been paid.(8) The Authority may, in granting an authorisation, specify requirements that are to be complied with before the authorisation takes effect. The authorisation does not take effect until such time as any such requirements have been complied with.(9) An authorisation:(a) is subject to such conditions:(i) as are imposed by the Authority (whether at the time the authorisation is granted or at a later time), or(ii) as are imposed by this Act or as are prescribed by the regulations, and(b) may be varied or revoked by the Authority on the Authority’s initiative or on application by the registered club that holds the authorisation, the Director-General or the Commissioner of Police.(10) Any such application by a registered club to vary or revoke an authorisation (including any conditions to which the authorisation is subject that have been imposed by the Authority) must be accompanied by the fee prescribed by the regulations.(11) An authorisation has effect only while all the conditions to which it is subject are being complied with.(12) The Authority must not impose a condition on an authorisation or revoke or vary an authorisation unless the Authority has:(a) given the registered club that holds the authorisation a reasonable opportunity to make submissions in relation to the proposed decision, and(b) taken those submissions into consideration before making the decision.(13) Subsection (12) does not apply if the registered club has applied for the authorisation to be revoked or varied.(14) This section does not authorise the revocation or variation of a condition to which an authorisation is subject if the condition is imposed by this Act or is prescribed by the regulations.
25–29(Repealed)