Club industry consultant Warren Tapp is an expert in club legislation and governance, and currently doing a PhD on the topic. He has offered his opinion on the subject of Director Training.
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Many Club Managers tell me that their Board don’t know what they don’t know about being a Club Director.
This is not surprising, when most Boards are made up from their members (often volunteers) who often do not have the skills or experience to be responsible for a multi-million-dollar business or assets. Of course, some of the larger clubs do have effective Boards with skilled Directors, who are often paid for this role.
Key is training for club Directors. Most Club Associations in each State or Territory do provide some limited governance training, but it is not compulsory.
In NSW, the Registered Clubs Act 1976 does make it mandatory. A new club Director must complete some training within 12 months of being elected to the Board and refresher training if still on the Board after five years.
The Act also makes training mandatory for club managers, unless they have an exemption. This is important as the CEO as well as the Board are responsible for the governance of the club.
The problem, in my view, is that clubs do not have to report such training to the ILGA in NSW and simply keep their own records, so the regulator does not know if the legislation is being followed.
There is no such compulsory Director training in all the other States or Territories. Of course, there are many commercial organizations offering Director training, such as the Australian institute of Company Directors, but the cost can be a barrier. There is only one RTO in Australia offering an accredited course for Directors, and to my knowledge nothing specifically for club Directors apart from the courses CMAA offer.
With the liability that a club Director has in the law it is surprising there is not more compulsory training for them, paid for by their club. Some of the clubs that have failed may have survived if their Board were skilled in their role.
Good governance is well worth it, and your members deserve it. Warren Tapp.
