AUSTRALIA Law and Practice Contributed by: Sven Burchartz and Jessica Bell, Kalus Kenny Intelex
• directors being personally liable for debts; • civil penalties; • criminal charges; • winding up and liquidation; and • disqualification of directors from managing any corporations for a period of time. Other Relevant Rules Many sporting organisations have additional internal governance policies, including fit and proper person tests for officeholders, background checks and con - flict-of-interest rules. At a series or competition level, there are often agree - ments in place between clubs or teams and the organ - isation responsible for running the series or competi - tion. These agreements typically include rules relating to eligibility to participate, ongoing compliance obliga - tions, and a requirement that any change in owner - ship of a club or team be approved by the series or competition organiser. By way of example, the AFL operates a club licens - ing framework, while the NRL and Supercars each have ownership (or change-of-ownership) approval processes for clubs or teams. Consequences for Non-Compliance In addition to the consequences outlined above in relation to insolvent trading, there may be conse - quences for failing to meet governance requirements. These will depend on the sport, the competition struc - ture and the relevant governing body. Consequences may include:
tory governments also fund grassroots sport, facilities and major events. In addition, sporting organisations generate private revenue through broadcasting rights, sponsorships, memberships and merchandising, with professional sport relying primarily on private invest - ment and community sport more heavily supported by government funding and local contributions. 5. Intellectual Property, Data and Data Protection 5.1 Trade Marks Registering a Trade Mark In Australia, any individual, company, or incorporat - ed association may apply to register a trade mark in respect of certain goods or services by filing an appli - cation with IP Australia. Subject to certain requirements, a letter, word, name, signature, numeral, device, brand, heading, label, ticket, aspect of packaging, shape, colour, sound or scent (provided it is capable of graphical representa - tion) may be registered. What Cannot Be Registered? Certain marks cannot be registered in Australia, including: • marks that are purely descriptive; • some geographical names; • marks containing common surnames; • certain words related to banking and financial services; and • certain prohibited signs and marks which are scan - dalous by nature or contrary to law. The Benefits of Registration The benefits of having a registered trade mark are that the registered owner has the exclusive right to use the mark in respect of the goods and services covered by the registration. Trade mark owners can protect their trade mark by bringing an action against any - one who uses a substantially identical or deceptively similar mark in respect of the same or similar goods or services.
• loss, suspension or reduction in funding; • ineligibility to remain in the competition; • external intervention in the club/team; or • reputational damage to the club/team. 4.3 Sport Funding
Australian sport is funded through a mix of govern - ment funding and private investment. At the federal level, the Australian Sports Commission distributes government funding across national and state sport - ing organisations, high-performance programs and community participation initiatives, and is account - able to the Federal Minister for Sport. State and terri -
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