New South Wales Consolidated Acts

REGISTERED CLUBS ACT 1976 - SECT 41E

41E Disposal of real property by registered clubs

(1) A registered club must not dispose of any core property of the club unless--

(a) the property has been valued by a qualified valuer, and

(b) the disposal has been approved at a general meeting of the ordinary members of the club at which a majority of the votes cast supported the approval, and

(c) any sale is by way of public auction or open tender conducted by an independent real estate agent or auctioneer.

(2) If core property is disposed of by a registered club in contravention of subsection (1), the Secretary may make an application to the Supreme Court for an order in relation to the disposition of the property.

(3) In determining an application under subsection (2), the Supreme Court may make such of the following orders as it thinks fit if it is of the opinion that the disposal of the core property has not been generally to the benefit of the members of the registered club--

(a) an order declaring a contract for the disposal of the property void,

(b) where the property had been owned by the club when it was disposed of, an order directing that the property be transferred back to the registered club,

(c) an order directing the payment of an amount or a further amount in relation to the disposal of the property by the person to whom the club disposed of the property or any person who benefited from the disposal of the property,

(d) such other orders as the Supreme Court considers necessary or appropriate in the circumstances.

(4) The Supreme Court may not make an order under subsection (3) that, in the opinion of the Supreme Court--

(a) would unfairly and materially prejudice an interest or right of a person who acted in good faith and with no reasonable grounds to suspect that the disposal of the property concerned was in contravention of this Act, or

(b) would result in the extinguishment of an interest in the property (without proper compensation) held by a person who had no knowledge that the property had been disposed of in contravention of this Act or no means of preventing the disposal of the property.

(5) The annual report of a registered club must specify the core property and non-core property of the club as at the end of the financial year to which the report relates.

(6) In this section--

"core property" of a registered club means any real property owned or occupied by the club that comprises--

(a) the premises of the club, or

(b) any facility provided by the club for the use of its members and their guests, or

(c) any other property declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, to be core property of the club,

but does not include any property referred to in paragraphs (a)-(c) that is declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, not to be core property of the club.

"dispose" of property means to sell, lease or licence the property or to otherwise deal with the property in such manner as may be prescribed by the regulations.

"non-core property" of a registered club means any real property owned or occupied by the club that is not core property.

"qualified valuer" means a person who--

(a) has membership of the Australian Valuers Institute (other than associate or student membership), or

(b) has membership of the Australian Property Institute (other than student or provisional membership) acquired in connection with his or her occupation as a valuer, or

(c) has membership of the Royal Institution of Chartered Surveyors as a chartered valuer, or

(d) is of a class of persons prescribed by the regulations.