How poor corporate governance can cost you thousands

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Congratulations!  You’ve just been voted in as a member of the Board/Committee of your local Club.  You and your Board or Committee look forward to implementing many important decisions that will affect the future growth and development of the club, with the aim to become a more vital part of your local community.  Five months into your new role, disaster strikes.  Were you prepared?
The Finance Manager has been charged with defrauding the Club over the past three years to the amount of $300,000.  Worse still, as the Board/Committee Member responsible for reviewing the financial statements, you have been charged with failing this duty.  Because your corporate governance structure did not involve an effective fraud prevention strategy or outlined your Board responsibilities effectively, you are now personally liable for thousands of dollars in fines. This was meant to be a challenging side project that you could sink your teeth into – how could this happen?

As the end of Financial Year draws closer and Clubs will commence Committee and Board election periods over the next 6 months, it is important to remember that training new and existing members of Boards and Committees in their personal and commercial obligations is imperative.

Corporate Governance is not just for large organisations – it is vital for small businesses too. Investing in a good structure allows the operations of your venue to run smoothly, with minimal confusion about responsibilities.

“Corporate Governance is really about good decisions being made by informed people.

Board and Committee Members of Community Clubs within Queensland are often unaware of the many legal obligations that are involved with their roles.  This is an easy oversight as these positions are voluntary and unpaid, but a lack of investment in this area can lead to huge penalties that can directly affect business and personal assets.  If this wasn’t damaging enough, the reputation of your Club is also at risk.  The ripple-on effect of an incident caused by poor corporate governance can spread to every aspect of your venue and its workers.

A formal Corporate Governance structure is an ideal method of providing Board Members with legal protection should an incident within your venue occur.  DWS Hospitality Specialists have 20 years of providing comprehensive Corporate Governance Training Programs that cover ethical, managerial, regulatory and legal responsibilities.   By keeping our programs relevant to our industry and up to date with all legislative changes, attendees will gain the knowledge required to make informed, effective decisions.

Enrolling new board or committee members into our corporate governance program is a wise course of action that will contribute to the ongoing success and improved management of your venue, as well as protecting members from any personal litigation.

Many Club Boards and Committees have benefited from the program;

“Corporate Governance is vital to every Club Board in Queensland and is now a regular mandatory exercise for our Board.  It enables us to do our job with confidence, knowledge, and understanding for not only our roles, but also our senior management KPIs  The DWS program is 100 per cent relevant to our industry, filled with examples and explanations and is presented in an interesting and entertaining way.” Wade Core – Chairman | Carina Leagues Club

The growing regulatory complexity and risks associated with fulfilling a Board/Committee role on a Limited Liability Company continues to place significant pressure to undertake some fundamental skill development and knowledge training.

The Queensland Office of Liquor and Gaming Regulation (OLGR) expects Board and Committee members of gaming venues to possess a degree of corporate governance and the recent Productivity Commission report on not-for-profit organisations in Australia has raised some concerns with respect to corporate governance, which makes this a significant issue for all Community Clubs.

Don’t wait for a crisis to spur you into action!

Be proactive and reduce the risk to your venue and to your Board or Committee Members by booking a full day Corporate Governance Training Program. For more information on bookings, contact John Dickson on (07) 3878 9355 or email john@dws.net.au.

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