1. by Paul Horvath © SportsLawyer 2013
Risk Management Presentation for the Sports Club Management Expo th November, 2013
by Paul Horvath
© SportsLawyer 2013

2. Introduction Part 1: Board of Directors
Legal Duties of Board Members and avoiding liability
Good governance principles
Risk Management
Constituent Documents of the Sporting Organisation
Governance - Practical tips
Part 2: Coaches
Negligence
Standard of Care

3. 1) Legal Duties of Board Members and avoiding liability- General
Obligations and limitations are placed on the organisation and its board members by applicable legislation
Can depend on whether the organisation is a company limited by guarantee, an incorporated association or an unincorporated association – volunteer immunity

4. 1) Legal Duties of Board Members and avoiding liability
Exercise due skill and diligence
Avoid conflicts of interest
Keep proper books of account
Act for the benefit of the association as a whole and for a proper purpose
Do not improperly use your board position or information acquired from your position
Act honestly and in good faith
Director insurance

5. 1) Legal Duties of Board Members and avoiding liability- Case studies
Commonwealth Bank v Friedrich – part time, volunteer, non-executive director personally liable for $92million debt

6. 2) Good governance Principles
Following good governance principles is no guarantee of your organisations success but it will generally increase chances of success
No one size fits all – depends on size and resources of your organisation
Guidance from Australian Sports Commission and Australian Stock Exchange guidelines

7. 2) Good governance Principles- Australian Sports Commission (download at
ASC Principles focus on planning, documenting, implementing, monitoring and evaluating and cover the following areas:
Board composition, roles and powers
Board processes
Governance systems (inc risk management)
Board reporting and performance
Member relationship and reporting
Ethical and responsible decision making

8. 3) Risk Management -Risk management program
Develop relevant risk management policies and procedures
Make relevant people aware of such policies and procedures
Monitor policies and procedures
Have a way of enforcing the policies and procedures
Review the policies and procedures every 12 months to ensure they remain up to date

9. 4) Constituent Documents
As a member, or as the competition organiser, you need to ensure your League/competition and you comply with the issues below;
Ensure your constitution is current, and has been updated; allows you as a Board, or your tribunal, to do what you are doing – don’t assume that as you are taking certain action, you must have the power to do it; constitution must be clear (detailed and tedious exercise);
Weightman v Tasmanian Football League (1995) – court said the constitution lacked meaning in parts; found the tribunal was not properly delegated power to hear cases - suspensions imposed were invalid/void;

10. 5) Governance - Practical tips
Board is responsible for setting the strategic plan for the organisation
Make sure the plan is understood by management
Regular reviews of organisation’s performance as against strategic plan
Create specialist sub committees 10

11. Part 2: Coaches 1) negligence
For a negligence claim to be successful:
A legal duty of care must be owed by a coach to the player
The coach must fail to provide a standard of care expected of a competent coach who is both reasonable and prudent
The player must suffer some injury or damage which was reasonably foreseeable
The coach’s conduct must have caused or led in some way to the injury suffered.
How easy is it to remove/minimise the risk?

12. 2) Standard of Care Takes into account the following factors:
probability of injury
gravity of injury
type of activity
age of participants
ability of participants
physical condition of participants

13. 2) Risk Management Key duties coaches should seek to meet:
provide a safe environment – no bullying
plan activities adequately
evaluate players for injury and incapacity
use safe and proper equipment
warn players of the risks of the sport
closely supervise activities
keep adequate records
develop rules for training and general conduct

14. Questions

15. Contact Details Paul Horvath A: Level 4/221 Queen Street
Melbourne Vic P: E: W:
@SportsLawyerAus