Duties of the responsible entity

The Corporations Act expressly requires that the Responsible Entity when exercising its powers and carrying out its duties must:

  • act honestly;
  • exercise a degree of care and diligence that a responsible person would exercise if they were in the Responsible Entity’s position;
  • act in the best interest of Members and, if there is a conflict between the Members’ interests and its own interests, give priority to the Members’ interests;
  • treat Members in the same class of Memberships equally and Members who hold Memberships in a different class fairly;
  • not make improper use of information acquired through being the Responsible Entity of the Club to either gain an improper advantage for itself or another person or cause detriment to Members;
  • ensure the Constitution, Regulations and Compliance Plan meet the requirements of the Corporations Act and that the Responsible Entity complies with the Compliance Plan;
  • ensure that all payments out of the Club Property are made in accordance with the Constitution and the Corporations Act;
  • report to ASIC any breach of the Corporations Act that relates to the Club or has had or is likely to have a materially adverse effect on the interests of Members, as soon as practicable after it becomes aware of the breach; and
  • carry out or comply with any other duty, not inconsistent with the Corporations Act, that is conferred on the Responsible Entity by the Constitution.