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ACN 008 488 855

Annual Report 2010 -11

Altogether more rewarding


Canberra Southern Cross Club Annual Report 2010 -11

Contents

President’s Report

02

Directors’ Report

04

Auditor’s Letter

08

Financial Statements

09

Directors’ Declaration

19

Auditor’s Report

20

Graphs

22

Corporate Information

24


Canberra Southern Cross Club Annual Report 2010 -11

President’s Report 3

President’s Report 2

Canberra Southern Cross Club Annual Report 2010 -11

President’s Report I am pleased on behalf of the Board, to announce an improved profit this year of $798,852 which the Board believes validates the difficult decision to close the Yamba Club. However trading conditions continue to be difficult due to general market downturns and the Board must continue to be vigilant in its financial management. The outlook is also of significant concern, with proposed regulatory constraints on gaming, that if adopted will significantly reduce revenues. And even if not adopted, the Club can still expect increased regulation that will detrimentally affect revenues. As a result, the Board, through its Finance Committee, has: • Reviewed the performance of all assets and businesses to identify and improve underperforming areas. Assets that are being focussed on are the Pitch & Putt business and the Yacht Club. The Club has received a good deal of negative publicity about its plans for the Pitch & Putt facility. Members need to be reminded that at times the Board has to make decisions that are unpopular with a segment of the membership but the Board’s overall responsibility is to the Club’s 85,000 members and to the continued financial viability of the Club for those members. • Sought to reduce risk through a program of debt reduction, and we are pleased to report that debt levels have reduced to $7.4million from a high of over $10.5million only 3 years ago.

• Continued to focus on diversification of income (away from gaming) and improving the Club’s long term viability through considered investment in services which are popular with members such as health and fitness. In line with this the Club has increased its stake in the Health Club to 70%. • Completion of a three year risk management cycle which has seen 42 reports written, focusing on all major risks in our operations. • Aimed to improve profitability on operations whilst upholding the Club’s reputation for value for money and maintaining member services. The renovation of the Yacht Club will have commenced by the time you receive this newsletter. The first stage involves a refurbishment of the main areas, including the provision of a new bar, ceilings and floors. Stage Two will occur next year and will include large balconies around two sides of the Club. New Anytime Gyms have been established in Tuggeranong and Woden and the car park renovations have been completed at Jamison.

Other work to be undertaken in 2011/12 under the direction of the Planning Committee includes the refurnishing of both grille areas at Woden and Tuggeranong. The Club has plans for expansion at Jamison and parking improvements at Tuggeranong under consideration and you will be advised once these are developed further. Whilst this might seem to be at odds with the concerns expressed above, the Board remains committed to maintaining the Club assets at the highest standards possible. The Annual Community Grants Lunch held in August remains an important event for the Club and the organisations involved. The new Chief Minister, Katy Gallagher, presented cheques on your behalf to approximately 100 local charitable and community organisations, as part of the Club’s commitment of over $1.6million this year. The Board was honoured to have The Chief Minister attend and hope that she is able to continue the commitment of her predecessor, Mr Jon Stanhope, to this event. The Board would also like to acknowledge Mr Stanhope’s commitment to the

community and to the club sector and wish him well in his new career. The ClubsACT award night was held at the Woden Club in May and the Club’s achievements were once again acknowledged. In particular, winning the award for Member Services for the tenth year out of the eleven the award has been presented is recognition of the Club’s long term commitment to the welfare of its members. I thank CEO Greg Mitchell, General Manager Carol Sawyer and their staff for their continued hard work and dedication and would also like to acknowledge the Board for their support and commitment. Jack Rice President Finance Committee – John Lewis (Chairperson) Planning Committee – Bob Lloyd (Chairperson) Member Services – Kim Marshall (Chairperson)


Canberra Southern Cross Club Annual Report 2010 -11

Dividends In accordance with the constitution, the company is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the financial year.

Directors’ Report The directors of Canberra Southern Cross Club Limited submit herewith the annual financial report for the financial year ended 27 June 2011. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Review of operations • To provide support to the community either financially, through donation of food or by providing facilities. The entity’s long term objectives are: To be the premier club in the Australian Capital Territory by:

Directors

• Developing and reviewing a strategy for quality investments, services and memberships;

The following persons were directors of Canberra Southern Cross Club Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

• Maintaining innovative, diverse responsible cost effective services to members;

J.J. Rice J.J. Lewis R.W. Lloyd K. Marshall M.B. Laughlin C. Behrens D.N. Grimmond P.L. Rollings J.A. O’Loughlin S.C. Plummer A.F. Caddy (retired on the 13 October 2010)

Principal activities The consolidated entity’s activity in the course of the financial year was the operation of licensed club facilities. During the financial year there was no significant change in the nature of that activity The entity’s short term objectives are: • To provide a diverse range of services and amenities to members and their guests based on Christian standards. • Providing for families through offering family friendly facilities.

There has not been any matter or circumstance that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.

Operations comprised the running of licensed club facilities and the provision of member services.

Likely developments and expected results of operations

Significant changes in the state of affairs

Disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been disclosed in this report.

During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred to in the financial statements or notes thereto.

• Exploring and developing opportunities for diversifying investments;

Environmental regulation The Club is not subject to any significant environmental regulations.

• Fostering family values and Christian standards; • Being recognised for providing positive and constructive community support.

Matters subsequent to the end of the financial year

Information on directors

To achieve these objectives, the entity has adopted the following strategies:

Name

Special Responsibilities

Years Service

Occupation

The Club strives to attract and retain quality staff that are committed to working in the hospitality industry. The Club believes that retaining quality staff will assist with the success of the Club in both the short and long term.

J.J. Rice B Econ.

President

30

Retired

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

Senior Vice President

8

Company Manager

R.W. Lloyd

Vice President

15

Retired

K. Marshall

Vice President

8

Public Servant

M.B. Laughlin BA

Director

18

Public Servant

C. Behrens B.Ec/LLB

Director

5

Senior Executive Lawyer

D.N. Grimmond OAM FREIA

Director

10

Real Estate Agent

P.L. Rollings

Director

20

Retired

J.A. O’Loughlin AFSAE

Director

35

Executive Director

S.C. Plummer

Director

12

Manager

A.F. Caddy P.S.M., B Comm.

Director

37

Retired

The Club is committed to providing excellent customer service. This is achieved through the Club’s Customer Service Charter and training staff in technical skills and knowledge. The Club prides itself on productive working relationships of its staff. Through the Club’s culture of Christian standards, the Club continues to meet consistent high level of community support through the annual grants program together with a comprehensive sporting grants program. In addition to these major programs the Club is committed to the wider community by providing facilities and donated food, this is evidenced by ongoing support of various community groups. The Club has strong financial management and corporate governance which is managed through the Club’s business plan, key performance indicators, risk management plan and internal audit program. Monitoring of financial performance is reviewed on a monthly basis by executive management and Directors.

Company secretary The company secretary is Greg Mitchell. Greg is also the Chief Executive Officer of Canberra Southern Cross Club.

Directors’ Report 5

Directors’ Report 4

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Meetings of directors

Auditor’s independence declaration

The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member).

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances leave of absence was sought and approved.

Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

A = Number of meetings held during the time the director held office or was a member of the committee during the year B = Number of meetings attended

Board of Directors Meetings

Member Services Committee

Financial Management Committee

Planning and Development Committee

Directors

A

B

A

B

A

B

A

B

C. Behrens

12

11

9

8

12

10

3

3

J.J. Rice

A.F. Caddy

4

4

3

3

3

3

-

-

President

D.N. Grimmond

12

11

-

-

12

10

12

10

M.B. Laughlin

12

11

12

8

12

11

-

-

J.J. Lewis

12

10

12

9

-

-

-

-

R.W. Lloyd

12

11

-

-

-

-

12

12

K. Marshall

12

11

3

3

12

12

J.A. O’Loughlin

12

8

12

11

-

-

12

10

S.C. Plummer

12

10

12

7

12

10

-

-

J.J. Rice

12

12

-

-

-

-

-

-

P.L. Rollings

12

11

-

-

-

-

12

11

-

J.L. Lewis Senior Vice President

Canberra, ACT 5 September 2011

Indemnification of officers During the financial year, the company paid a premium in respect of a contract insuring the directors of the company (as named above), the company secretary, and all executive officers of the company and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The consolidated entity has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer or auditor.

Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001.

Directors’ Report 7

Directors’ Report 6

Canberra Southern Cross Club Annual Report 2010 -11


Consolidated Statement of Comprehensive Income For the financial year ended 27 JUNE 2011 Notes

2011 $

2010 $

34,474,713

33,925,770

(22,761,436)

(22,523,070)

(587,418)

(606,553)

Marketing expenses

(1,347,482)

(1,273,338)

Occupancy expenses

(7,479,348)

(6,975,869)

Operating lease expenses

(427,365)

(758,120)

Show expenses

(551,305)

(495,686)

Other expenses

(521,507)

(759,585)

18,643

144,151

817,495

677,700

-

-

817,495

677,700

Total comprehensive income for the year

817,495

677,700

Profit is attributable to: Owners of Canberra Southern Cross Club Limited

817,495

677,700

Revenue from continuing operations Administration expenses Finance costs

Share of net profit of associates and joint venture partnership accounted for using the equity method

Profit before income tax Income tax expense

Profit for the year

2

Other comprehensive income

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Financial Statements 9

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Consolidated Statement of Changes in Equity For the financial year ended 27 JUNE 2011

Consolidated Balance Sheet As at 27 JUNE 2011 Notes

Consolidated Retained Surplus $

2011 $

2010 $

Cash and cash equivalents

5,580,289

4,635,747

Trade and other receivables

784,955

643,085

Balance at 30 June 2009

Inventories

464,012

465,935

Total comprehensive income for the year as reported in the 2010 financial statements

Other Financial assets

368,051

434,131

Balance at 28 June 2010

43,280,122

7,197,307

6,178,898

Balance at 29 June 2010

43,280,122

Current assets

Total current assets

Total comprehensive income for the year as reported in the 2011 financial statements

Non current assets Investments accounted for using the equity method

1,153,977

1,090,334

35,000

35,000

47,284,671

49,238,454

506,713

506,713

Total non-current assets

48,980,361

50,870,501

Total assets

56,177,668

57,049,399

Trade and other payables

2,878,361

2,637,887

Borrowings

2,074,920

7,177,279

839,918

961,856

559,904

524,757

6,353,103

11,301,779

5,356,424

2,231,349

370,524

236,149

5,726,948

2,467,498

Total liabilities

12,080,051

13,769,277

Net assets

44,097,617

43,280,122

Retained earnings

44,097,617

43,280,122

Total equity

44,097,617

43,280,122

Other financial assets Property, plant and equipment Goodwill

Current liabilities

Provisions

3

Other

Total current liabilities Non-current liabilities Borrowings Provisions

Total on current liabilities

4

Equity

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

Balance at 27 June 2011

42,602,422 677,700

817,495

44,097,617

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Financial Statements 11

Financial Statements 10

Canberra Southern Cross Club Annual Report 2010 -11


Consolidated Statement of Cash Flows For the financial year ended 27 JUNE 2011 Notes

Notes to the Financial Statements For the financial year ended 27 JUNE 2011 2011 $

2010 $

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest and other costs of finance paid

Net cash inflow (outflow) from operating activities

Payment for investment in associate Payments for property, plant and equipment Proceeds from sale of property, plant and equipment

Net cash (outflow) inflow from investing activities

The concise financial report is and extract from the full financial report for the year ended 27 June 2011. The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001.

50,691,920

(45,500,843)

(43,593,709)

(587,418)

(606,553)

6,991,680

6,491,658

109,862

200,774

The presentation currency used in this concise financial report is Australian dollars.

-

(92,222)

Note 2 Revenue

(4,336,764)

(4,550,553)

157,048

273,071

(4,069,854)

(4,168,930)

Cash flows from investing activities Repayment of borrowings

Note 1 Summary of significant accounting policies

53,079,941

Cash flows from investing activities Interest received

Canberra Southern Cross Club Annual Report 2010 -11

The financial statements, specific disclosures and other information included in the concise financial report are derived from, and are consistent with, the full financial report of Canberra Southern Cross Club Limited and its subsidiaries. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Canberra Southern Cross Club and its subsidiaries as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request.

2011 $

2010 $

CSCC gaming

12,674,931

12,333,251

Yamba gaming

86,001

443,514

Yacht gaming

230,042

218,164

Tuggeranong gaming

8,245,777

7,833,488

Jamison gaming

3,876,393

3,318,782

Turner gaming

215,518

223,174

497,928

483,064

25,826,590

24,853,437

17,208,126

16,801,115

Rental revenue

637,895

1,333,093

Interest revenue

109,862

200,774

Membership income

404,565

382,567

2,587

37,308

483,261

433,692

2,180,228

2,100,645

21,026,524

21,289,194

Revenue from operations consisted of the following items: Gaming revenue

(1,964,000)

(1,052,372)

(13,284)

(64,651)

(1,977,284)

(1,117,023)

944,542

1,205,705

Cash and cash equivalents at the beginning of the financial year

4,635,747

3,430,042

Kaleen gaming

Cash and cash equivalents at end of year

5,580,289

4,635,747

Total gaming revenue

Finance lease payments

Net cash inflow (outflow) from financing activities Net increase (decrease) in cash and cash equivalents

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Revenue Revenue from sale of goods

Bowling income Members entertainment income Other

Total revenue

Notes to Financial Statements 13

Financial Statements 12

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Note 3 Current liabilities – Provisions

Note 2 Revenue (continued) 2011 $

2011 $

2010 $

Employee benefits

839,918

961,856

Total

839,918

961,856

Employee benefits $

Total $

Carrying amount at start of year

961,856

961,856

Accrued leave paid during the year

696,796

696,796

(818,734)

(818,734)

839,918

839,918

2011 $

2010 $

2010 $

Revenue from operations consisted of the following items: (continued) Cost of sales Gaming

(5,654,058)

(5,388,483)

Other sales

(6,724,343)

(6,828,378)

(12,378,401)

(12,216,861)

34,474,713

33,925,770

Total cost of sales

(a)

Movements in provisions

2011

Total revenue from ordinary activities (a) Significant expense items

Additional provision recognised during the year

Finance costs Interest – other entities Interest – finance leases Bad debts written off – other entities

582,771

600,061

4,647

6,492

16,363

7,100

Carrying amount at end of year

Note 4 Non-current liabilities – Provisions

Depreciation and amortisation of non current assets Buildings

2,201,310

2,119,987

Employee benefits

370,524

236,149

Property, plant and equipment

3,854,181

3,460,527

Total

370,524

236,149

14,365

14,365

Employee benefits – long service leave $

Total $

Carrying amount at start of year – 28 June 2010

236,149

236,149

Additional provision recognised during the year

134,375

134,375

Carrying amount at end of year – 27 June 2011

370,524

370,524

Leased assets

(a)

Operating lease rental expenses Minimum lease payments

427,365

758,120

1,045,100

1,017,345

12,428

137,959

11,825,641

11,602,410

Employee benefits Defined contribution plans Termination benefits Other employee benefits

Movements in provisions

2011

Notes to Financial Statements 15

Notes to Financial Statements 14

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Note 5 Additional company information

Note 7 Key management personnel disclosures

Every member undertakes to contribute to the assets of the company in the event of and for the purposes of the winding up of the company, an amount not exceeding $2. There were 85,322 members at 28 June 2011 (2010: 83,856 members).

(a)

Canberra Southern Cross Club Limited is a company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

(i) President

(iv) Directors

J. Rice, B. Econ.

A.F Caddy, P.S.M., B.Comm. (retired on the 13 October 2010 )

Canberra Southern Cross Club Limited 92 96 Corinna Street Woden ACT 2606

Directors

The following persons were directors of Canberra Southern Cross Club Limited during the financial year:

(ii) Senior Vice President J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

Note 6 Remuneration under contractual agreements and consultancies Contractors or consultants who received or were due to receive $49,999 or more under contractual arrangements:

C. Behrens B.Ec/LLB D.N. Grimmond OAM FREIA

(iii) Vice President

J.A. O’Loughlin, AFSAE

R.W. Lloyd

P.L. Rollings

K. Marshall

M.B. Laughlin B Arts

A1 Premium Services

OPC (Canberra) Pty Ltd

ACTEWAGL Gas

Premier Venue Entertainment

ACTEWAGL Retail

Reel Gaming Solutions

The specified executives of the company and the consolidated entity during the year were:

Ainsworth Game Technology

Shuffle Master

G. Mitchell (Chief Executive Officer & Company Secretary from 27 May 2009)

ALSCO Pty Ltd

Sky Channel Pty Ltd

C. Sawyer (General Manager)

Anittel Communications Pty Ltd

Smart Protection Group Pty Ltd

D. Mullins (Finance Manager until 25 October 2010)

Aristocrat Leisure Industries

Transact Capital Communication

A. Cullen (Finance Manager from 25 October 2010)

Aruze Gaming Australia Pty Ltd

The Sports Club Kaleen

Canberra North Bowling Club

Thiess Services Pty Ltd

(b)

Chubb Security Services

De Marco Property Development

Epicurean Contract Caterers

Leading Edge Amusements

The aggregate compensation of the key management personnel of the consolidated entity and the company, is set out below:

Honeywell Limited

Mutual Brokers Pty Ltd

I.G.T (Australia) Pty Ltd

RSM Bird Cameron

Leader Security Pty Ltd

Notes to Financial Statements 17

Notes to Financial Statements 16

Canberra Southern Cross Club Annual Report 2010 -11

S.C. Plummer

Key management personnel compensation

Short term employee benefits Other long term benefits

(c)

2011 $

2010 $

748,056

712,761

7,904

5,796

755,960

718,557

Executives remuneration

Section 74 of the Gaming Machine Act 2004 requires executive remuneration above the prescribed amount of $100,000 to be reported in the financial statements. During the year there were 8 executives, 7 of whom received total remuneration between $100,000 and $200,000, and 1 who received between $300,000 and $400,000. (2010: 7 executives).


Canberra Southern Cross Club Annual Report 2010 -11

Note 7 Key management personnel disclosures (continued) (d)

Directors remuneration

Included within key management remuneration in note 7(b) above is remuneration paid or payable, or otherwise made available, in respect of the financial year, to all directors of the company, directly or indirectly, by the company or by any related party. This represents payments for out of pocket expenses as approved at the 2010 Annual General meeting in accordance with Article 56A of the articles of association.

2011 $

2010 $

Consolidated

118,761

123,350

Company

118,761

123,350

Note 8 Events occurring after the reporting period Early in the 2012 financial year the consolidated entity increased it’s share holding in Peil Fitness Services Pty Ltd – Health and Fitness to 70% from 50%.

Directors’ Declaration In the directors’ opinion: (a) the concise financial report of Canberra Southern Cross Club Limited and its subsidiaries for the year ended 27 June 2011 as set out on pages 9 to 18 (i) complies with AASB 1039: Concise Financial Reports; and (ii) is an extract from the full financial report for the year ended 27 June 2011 and has been derived from and is consistent with the full financial report of Canberra Southern Cross Club Limited and its subsidiaries. This declaration is made in accordance with a resolution of the directors.

J.J. Rice President Canberra, ACT 5 September 2011

Directors’ Declaration 19

Notes to Financial Statements 18

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Graphs 23

Graphs 22

Canberra Southern Cross Club Annual Report 2010 -11

Graphs Consolidated Expenses from Ordinary Activities 2010/11

Club Gaming Trading 2010/11

Club Food Trading 2010/11

Sport & Recreation Trading 2010/11

7%

13% 7%

22%

21%

5%

15%

1%

4%

34% 32%

42%

10%

32%

26%

35%

8% 51% 8%

4% Depreciation and amortisation - $6.1 Million Utilities (Electricity, Fuel, Telephone and Rates) - $1.8 Million Salaries & On Costs - $14.8 Million Gaming Promotions - $2.1 million Cost of Goods - $12.4 Million Other Expenses- $10.1 Million

Consolidated Revenue from Ordinary Activities 2010/11 1%

2%

13%

10%

Gaming Machine Levy - $5.7 Million Wages and On Costs - $2.6 Million Gaming Promotions - $2.1 Million Depreciation - $2.7 Million Other Expenses - $2.0 Million Operating Surplus - $10.8 Million

Cost of Goods - $3.7 Million Wages and On Costs - $5.3 Miillion Depreciation - $148,079 Other Expenses - $798,742 Operating Surplus - $801,805

Club Liquor Trading 2010/11

Cost of Goods - $76,797 Wages and On Costs - $495,060 Depreciation - $197,302 Other Expenses - $559,638 Operating Surplus - $230,690

Club Members Entertainment Trading 2010/11

5%

5%

13%

19%

Distribution of Poker Machine Dollar 3%

37%

22%

11%

41% 6% 54%

12%

92%

16% 33% Gaming Revenue - $25.8 Million Beverage Revenue - $7.5 Million Food Revenue - $10.7 Million Membership Income - $409,592 Members Entertainment Income - $1.1 Million Other Revenue - $2.3 Million

Cost of Sales - $3.0 Million Depreciation Expense - $81,101 Wages and On Costs - $2.5 Million Other Expenses - $487,494 Operating Surplus - $1.5 million

1% 27% Entertainment Expenses - $536,593 Members Promotion Expenses - $434,105 Other Expenses - $489,834 Wages and On Costs - $1.1 Million Operating Deficit - ($1.4 Million)

Return to Player Direct Expenses including taxes and community expenses Club Hold


Canberra Southern Cross Club Annual Report 2010 -11

Corporate Information Election of Directors 2011 Annual General Meeting

Notice to Members Annual General Meeting

In accordance with the Clubs Constitution, three Directors of the Board must retire at each Annual General Meeting (but are eligible for re-election, subject to the usual criteria) which is determined on a rotation basis and the three Directors who need to retire this year are John Lewis, Adrian O’Loughlin and Paul Rollings. They are all eligible for re-election and have been nominated for election.

Members are advised that the 40th Annual General Meeting (AGM) will be held in the Private Dining Room at the Southern Cross Club Woden on Wednesday, 12 October 2011, at 8.00pm

Three other candidates have nominated for election and therefore we have six candidates standing for the three positions to be declared vacant.

2. Minutes of the 39th Annual General Meeting of 13 October 2010

Details of all candidates appear below and members will be requested to vote for the three vacant Directors positions. The ACT Electoral Commissioner is to be responsible for counting votes for this year’s election and the Board has appointed the Chief Executive Officer, Greg Mitchell as the Returning Officer.

4. Presentation of Finance Reports and Balance Sheets

After the ACT Electoral Commissioner has advised the results of the election the successful candidates will meet with the other seven Directors of the Club (prior to the Annual General Meeting on 12 October 2011) and elect the Board Executive for the forthcoming year, which will be announced at the AGM. The remaining seven Directors who did not need to stand for election at this time are Jack Rice, Bob Lloyd, Kim Marshall, Christopher Behrens, David Grimmond, Mary Laughlin and Simon Plummer. Greg Mitchell Chief Executive Officer

AGENDA 1. Apologies

3. Presentation of Annual Report

5. Auditor’s Report 6. Resolutions to amend and modify the Club’s Constitution according to the document to the right marked “A”. 7. Election of Directors

A RESOLUTIONS TO AMEND AND MODIFY THE CLUB’S CONSTITUTION 1. Resolution 1: To consider and if thought fit to pass as a special resolution: That, pursuant to s.136(2) of the Corporations Act, the Constitution tabled at the Annual General Meeting and signed by the Chairman of the Meeting for the purpose of identification be approved and adopted as the Constitution of the Club, in place of the current Constitution with effect from the close of this meeting. 2. Resolution 2: If Resolution 1 is not passed, to consider and if thought fit to pass as a special resolution: That, pursuant to s.136(2) of the Corporations Act, the Constitution tabled at the Annual General Meeting and signed by the Chairman of the Meeting for the purpose of identification be approved and adopted as the Constitution of the Club, in place of the current Constitution with effect from the close of this meeting.

Note: This is an alternative modified Constitution, see Explanatory Memorandum.

EXPLANATORY MEMORANDUM AMENDMENT AND MODIFICATION TO THE CONSTITUTION Resolution 1 The Club’s Constitution was last amended in 2004. It is proposed that the Club’s Constitution be amended to reflect recent regulatory changes and developments in the Club’s practice. A copy of the amended Constitution, marked up to show the proposed changes, is available prior to the meeting from the Club’s website at www.cscc.com.au identified as Resolution 1. Copies may also be obtained by emailing the Club to mail@cscc.com.au. A summary of the key changes proposed is set out below.

Membership Numbers The proposed new article 7.12 specifies the maximum number of life members (being Contributing Life Members and Honorary Life Members) that the Club shall have at any particular time at 5% of total membership as required by section 146(f) of the Gaming Machine Act 2004 (ACT);

8. Appointment and remuneration of Auditors

ELECTION OF DIRECTORS

9. Such other business brought forward in conformity with the Constitution

3. Resolution 3: To consider and if thought fit to pass as an ordinary resolution: That, pursuant to article 12.1 of the Constitution, the number of Directors on the Board for the ensuing year be 10.

The proposed new article 7.13 specifies the minimum number of Ordinary Members that the Club may have at any particular time at 300 in accordance with the requirements of the Club to be able to hold a Gaming Licence under section 146(e) of the Gaming Machine Act 2004 (ACT).

NOTES TO MEMBERS

Directors and Officers

The accompanying Explanatory Memorandum and the Annual Report forms part of this Notice of Annual General Meeting and should be read in conjunction with it.

Under the current Constitution, the number of directors on the Board can be in the range of 9 to 11. It is proposed to fix the number of directors to 10 so as to remove any ambiguity or confusion in having a range which may change from year to year. The Board has served with 10 directors for the past two years which is considered to be the optimum size of the Board.

10. Setting the Director’s honoraria for out of pocket expenses in accordance with Article 12.6 11. General Business

Corporate Information 25

Corporate Information 24

Canberra Southern Cross Club Annual Report 2010 -11


Canberra Southern Cross Club Annual Report 2010 -11

Nominations for Directors Election of Directors

Resolution 2

The proposed revised article 13.1 will clarify the existing procedure for nomination, taking of ballot and election of directors.

If Resolution 1 is not passed, Resolution 2 provides the opportunity to modify the Club’s Constitution according to the Explanatory Memorandum in Resolution 1 except that the Constitution will continue with the number of directors being in the range of 9-11 with the ability of members to approve any increase or decrease in the number of directors within that range.

Vacancies of Officers or Directors New articles 13.5(i) and (j) have been inserted as a consequence of new requirements of directors under the Liquor Act 2010 (ACT) to enable the Club to be eligible for a liquor licence. Existing article 13.6 has been deleted as the former section 201C of the Corporations Act 2001 (Cth) imposing conditions preventing the election of directors over the age of 72 years has been repealed.

Powers and Duties of Directors New article 14.6 has been proposed as a consequence of requirements under section 148B of the Gaming Machine Act 2004 (ACT) that the Board be able to amend the Constitution without a special resolution of members where directed to do so by the ACT Gambling and Racing Commission.

Definitions It is proposed that a number of definitions be updated and additional definitions be inserted to reflect changes to regulatory bodies and the law and references to legislation in provisions be amended. The Board unanimously recommends that the members vote in favour of the proposed amendments to the Club’s Constitution.

A copy of this modified Constitution marked up to show the proposed changes is available prior to the meeting from the Club’s website www.cscc.com.au identified as Resolution 2. Copies may also be obtained by emailing the Club to mail@cscc.com.au.

ELECTION OF DIRECTORS Resolution 3 The above resolutions adopting a modified Constitution will only apply from the close of the Annual General Meeting and do not apply to the election of directors for the ensuing year (2011/2012). Resolution 3 sets the Board number at 10 for the ensuing year. The Board has operated with this number of directors since 2010 and recommends no change for the ensuing year. This resolution is required as a result of changes introduced to section 201P of the Corporations Act which came into effect on 1 July 2011 because the number of directors is less than the maximum permitted by the Constitution (a range of 9 - 11). If Resolution 1 is passed, fixing the number of directors as 10, it will not be necessary in the future to have a resolution which sets the number of directors for the ensuing year. The Annual Report will be available at cscc.com.au from Monday 19 September 2011

Frank Waters Frank Waters has been a Club member for many years and a resident of Canberra since 1969. He has completed postgraduate studies in management and is a qualified lawyer. He has 25 years experience working in the government sector. In his own time Frank has also undertaken charity work for the disadvantaged.

John Lewis John has been a member of the Canberra Southern Cross Club for nearly 30 years and also worked part time in the Club for 8 years. He has been a Director for 7 years and is currently the Senior Vice President together with chairing the Financial Management Committee. John is an Accountant, with postgraduate Information Technology qualifications. He is a Fellow of the Institute of Company Directors and Senior Member and IT Certified Professional in the Australian Computer Society. John is married with three children and is interested in developing member services particularly for families and ensuring the Club is financially secure into the long term. He would like a Club that his children can join and would want to belong to.

Alex Murray After active service with the British Army in the Middle East, Alex migrated to Australia and has been settled in Canberra for the past 45 years. Recognised as “the lottery man” from The Thistle Kiosk for 34 years, he enjoys lawn bowls and Pitch and Putt. His business experience flows to asking the hard questions and ensuring transparency in public forums. He is currently undertaking a Volunteers Tour Guide Course at the Australian War Memorial.

Corporate Information 27

Corporate Information 26

Canberra Southern Cross Club Annual Report 2010 -11


Corporate Information 28

Canberra Southern Cross Club Annual Report 2010 -11

The Board of Directors Adrian O’Loughlin (AFSAE) Adrian has been a Director of the Southern Cross Club for 35 years. He joined the Club as a Contributory Life Member before its opening in 1972. He was made an Honorary Member in 1992 in recognition of his voluntary services to the Club. He has continued to be actively involved in Club policy and direction. Adrian represents all Members, without preference to any particular group; although he has a special interest in sport, financial management and forward planning. Adrian intends to continue actively working to maintaining and improving the already excellent facilities and services provided to Southern Cross Club Members.

Jack Rice

John Lewis

Bob Lloyd

Kim Marshall

Vice President

Vice President

President

Senior Vice President

Mary Laughlin

Christopher Behrens David Grimmond

Paul Rollings

DIRECTOR

DIRECTOR

DIRECTOR

Adrian O’Loughlin

Simon Plummer

DIRECTOR

DIRECTOR

Dr Stephen Kendal Dr Stephen Kendal is married to Alison and has three adult children and has been a member of the Club for over 30 years. Stephen worked within the public service for over 30 years and works as a consultant and advisor and is a member of professional management bodies, often in a supervisory role.

Paul Rollings Paul is married to Evelyn and lives in Chapman. He has two adult children, Jonathan and Stephanie. Paul was the CEO of John James Memorial Hospital from 1969 to 1999. Paul has been a member of the Canberra Southern Cross Club since its inception in 1972 and has been a Director for the past 20 years. He was appointed Honorary Life Member in 2003. He has served as both Vice President and Senior Vice President. Paul served as President of the Club from 1997 to 2000 and again from 2003 to 2006. If re-elected Paul will endeavour to ensure the Club remains economically viable and continues to provide quality services to its Members.

DIRECTOR


Woden 6283 7200 92-96 Corinna Street Phillip ACT 2606

Pitch & Putt 6232 5494 Irving Street Phillip ACT 2606

Tuggeranong 6293 7200 Cnr Holwell & Pitman Streets Tuggeranong ACT 2900

Southern Cross Sports Stadium – Tuggeranong 6293 2275 Cnr Colishaw & Athllon Drive Tuggeranong ACT 2900

Jamison 6251 2255 Cnr Catchpole & Bowman Streets Macquarie ACT 2614 Yacht Club & Cruises 6273 1784 ‘Lotus Bay’ Mariner Place Yarralumla ACT 2600 Kaleen 6241 2509 Georgina Crescent Kaleen ACT 2617 Turner 6247 7838 McCaughey Street Turner ACT 2612 Southern Cross Health Club 6283 7340 Irving Street Phillip ACT 2606

Southern Cross Sports Stadium – Woden 6293 2275 Irving Street Phillip ACT 2606 mail@cscc.com.au

www.cscc.com.au

Annual Report 2010 - 2011  

Canberra Southern Cross Club Annual Report 2010 - 2011

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