Registered Clubs Act 1976 (NSW)

Exercise care and diligence (s.180; business judgment rule at s.180(2))

Cth · ASICExternal responsibility

A director or officer must exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise if they were a director or officer of a corporation in the corporation's circumstances, and occupied the office held by, and had the same responsibilities within the corporation as, the director or officer. The s.180(2) business judgment rule provides a statutory defence where the director makes a business judgment in good faith for a proper purpose, has no material personal interest, has informed themselves to the extent reasonably appropriate, and rationally believes the decision is in the corporation's best interests.

Working draft, not legal advice

The plain-English summary above is drafted by Venue Axis as a navigation aid. The citation is the authoritative source — treat it as the definitive reference. For a legal interpretation of this obligation in your venue's context, talk to your counsel.

Operational metadata

How this obligation operates.

Citation
Corporations Act 2001 (Cth), s.180 (Care and diligence — civil obligation) + s.180(2) (Business judgment rule defence)
Read on legislation.nsw.gov.au →
Frequency
Continuous
Binds
director, board, ceo
Strategic tier
External responsibility
Owned by an external party (counsel, auditor, board, regulator). Explicitly out of Venue Axis's product scope; surfaced in the inventory so the regulatory picture is complete.
Consequence of breach

What can go wrong.

Civil contravention of a civil-penalty provision under s.1317E; pecuniary penalty up to the statutory maximum (currently the greater of 5,000 penalty units or three times benefit obtained for individuals); compensation orders under s.1317H to the corporation for damage suffered; possible director-disqualification orders by ASIC under s.206C. The business judgment rule at s.180(2) is a defence the director must establish, not a presumption.

Consequences are summarised from the underlying legislation. Specific penalties depend on the breach pattern, prior history, and the regulator's enforcement posture. Talk to a liquor and gaming lawyer for a definitive view of your venue's exposure.

Related obligations

Other items in Registered Clubs Act 1976 (NSW).

Tracks

Hold the Annual General Meeting within the prescribed period

Registered clubs must hold an AGM each year within the timeframe set by the Act and the club's constitution, with proper notice to members.

Supports

Conduct board elections per the constitution

Director elections must follow the process set out in the club's constitution and the Act. Candidate eligibility (not disqualified under s.3

Does (enforced)

Confirm directors are not disqualified

A person must not sit as a director if they are bankrupt, disqualified by ILGA, or otherwise ineligible under s.30A. The secretary must conf

Tracks

Maintain the register of members

The club must keep a current register of all members with the particulars required by the Act. The register must be available for inspection

Does (triggered)

Disclose and manage related-party transactions

Transactions between the club and a director (or an entity a director controls or benefits from) must be declared on the COI register, appro

External responsibility

Maintain the conflict-of-interest register

Directors, the secretary, and KMPs must declare any conflicts of interest on appointment and have them reviewed at least annually. The regis

Working references

Browse + take with you.

Free tool · Filterable explorer

Browse all 85 obligations →

Filter by jurisdiction, strategic tier, who's bound. The search-and-skim view; this page is the per-obligation deep link.

L&GNSW · the working surface

CL1002 framing →

The 75-Part Self-Audit Checklist L&GNSW inspectors walk through, and how Venue Axis is structured around it.

Library

All working references →

Free tools, comparisons, regulatory explainers — the full Venue Axis library, organised by category.

See it wired into a working venue.

The browseable tree is the inventory. The in-product working surface adds live evidence linkage, CL1002 alignment, and freshness scoring on top. First three months free, no card up front.