Surveys have found that the biggest worry today for Directors of public companies in Australia is cyber security. That is the risk that someone could hack into your databases of your staff or club members details or your financial records and use that information against your club.
So often Club Managers say to us that “the Board of Directors just leave everything up to me and I wish they would not”.
While the Manager is the Public Officer as far as the regulators are concerned, it does not mean they are responsible for everything. The law is very clear about the accountability of Club Directors or Committee members, you are all responsible too.
All Club Directors or Committee members must avoid any conflict of interest in their decisions for the Club. What does this mean? It means you can take part in any Board/Committee decision that you might benefit from. The hardest part is recognizing you actually have a conflict of interest.
All Club Committee members should read their Club Constitution, preferably as part of their induction on to the Board. As the document is the set of rules that apply to how your Club entity itself operates.
Clubs should consider getting an internal audit review done every few years. An internal audit looks at the controls you have in place to minimise the risk of such things as fraud. Audit reports offer suggestions to gain more efficiency in your Club operations.
Whether your Club is a company limited by guarantee or an Incorporated Association and you are a member of the Board or Committee, you have serious legal duties you must fulfill. It makes no difference whether you are paid for the role or you are a volunteer, the law