Sporting Clubs

Why is it important to my business?

Relevant Areas

Strong corporate governance should be the foundation for all decisions in a registered club. It can assist the club board and management to make good decisions that are in the best interests of the club, its members and other stakeholders. Good corporate governance systems, along with decisions made according to the business judgement rule, can also assist in protecting the club board or directors (if the club is a legal entity) from personal liability arising from actions of the club.

Board members, volunteers and managers need to ensure that in accordance with the legal requirements, they exercise a duty of care, that is make decisions with the degree of care and diligence that a “reasonable person” would exercise in the circumstances. The business judgement rule provides a defence for board members and directors who may have breached their duty of care to the club if they made their decision in good faith, for a proper purpose, and without a material personal interest or benefit from the decision.

All club boards should establish a governance system of risk oversight, management and internal control. Boards should determine the material risks faced by the club including on members, players, spectators and the community. The board should recognise and minimise risk, promote responsible decision-making, ensure effective communication to all stakeholders, respect the rights of members and help ensure the protection and good management of the assets entrusted to managers and directors by the members.