Organisations need people to support them in reaching governance and compliance requirements because it helps them operate in a lawful, ethical, and responsible manner. It is everyones responsibility to ensure they are following regulatory requirements for governance and compliance and within your Club, the following personnel help support you in implementing, monitoring and reviewing your requirements.
- Responsible Person
- Club Committees / Panels
- Governance Review
Directors’ Duties
Directors of clubs have legal and ethical responsibilities to act in the best interests of the organisation. These duties are derived from common law, statutory obligations (such as the Associations Incorporation Act 1981 (Qld)) and the organisation’s constitution and policies.
Core Legal Duties of Directors
| Duty of Care and Diligence | Directors must act with the degree of care and diligence that a reasonable person would exercise in the same position. This includes preparing for and attending meetings, understanding financial information, and making informed decisions. |
| Duty to Act in Good Faith and for a Proper Purpose | Directors must act honestly and in the best interests of as a whole, rather than to benefit themselves or any particular interest group. |
| Duty to Avoid Conflicts of Interest | Directors must disclose any material personal interest in matters relating to the affairs of the organisation and must not use their position to gain an advantage for themselves or someone else. |
| Duty Not to Improperly Use Position or Information | Directors must not misuse their position or information obtained through their role to gain an advantage or cause harm to the organisation. |
| Duty to Prevent Insolvent Trading | Directors must ensure that the organisation does not trade while it is insolvent or in a position where it is likely to become insolvent. |
| Compliance with Statutory and Constitutional Obligations | Directors must comply with the governing documents of the organisation, as well as any relevant laws, regulations, and funding requirements. |
Further information can be found on
• AICD – Directors’ Duties
• ACNC – Governance Standard 5
• Sport Governance Principles
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