Constitution

Manly-Warringah Rugby League Football Club Limited

CONSTITUTION – PUBLIC COMPANY LIMITED BY GUARANTEE

17th December 2007

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CORRS CHAMBERS WESTGARTH

Lawyers

Level 32, Governor Phillip Tower 1 Farrer Place

SYDNEY  NSW 2000

AUSTRALIA

Tel:  (02) 92106500

Fax:  (02) 92106611

DX:  133 SYDNEY

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CONTENTS

1            NAME OF CORPORATION

2            STATUS OF THE CONSTITUTION
2.1         Constitution of Company
2.2         Replaceable Rules

3            INTERPRETATION
3.1         Definitions
3.2         Interpretation

4            OBJECTS AND PURPOSE

5            MEMBERS

5.1         Eligibility for Membership
5.2         Initial Members………………………………………………………………………………………….4
5.3         Application for Membership…………………………………………………………………………4
5.4         Rights of members are non-transferable……………………………………………………….5
6            LIFE MEMBERS ……………………………………………………………………………………………………5
6.1         Nomination ……………………………………………………………………………………………….5
6.2         Consideration ……………………………………………………………………………………………5
6.3         Election ……………………………………………………………………………………………………6
6.4         Rights of Life Members ………………………………………………………………………………6

7            MEMBERSHIP PERIOD …………………………………………………………………………………………6

8            FEES AND SUBSCRIPTIONS…………………………………………………………………………………6

9            CONTINUITY OF MEMBERSHIP …………………………………………………………………………….7

10          MEMBERS’ LIABILITY ……………………………………………………………………………………………7

11          CESSATION OF MEMBERSHIP ……………………………………………………………………………..7
11.1       Cessation of Membership of a natural person
11.2       Resignation of Member
11.3       Effect of cessation/resignation …………………………………………………………………….8
11.4       Expulsion of Member …………………………………………………………………………………8

12          REGISTER OF MEMBERS……………………………………………………………………………………..8

13          GENERAL MEETINGS …………………………………………………………………………………………..8
13.1       Annual general meetings ……………………………………………………………………………8
13.2       Board convening a general meeting …………………………………………………………….9
13.3       Meetings requested by Members …………………………………………………………………9
13.4       Notice of general meeting …………………………………………………………………………..9
13.5       Postponement and cancellation of general meeting ……………………………………….9
13.6       Notice of change, postponement or cancellation of meeting ………………………….10
13.7       Omission to give notice relating to general meeting ……………………………………..10
13.8       Form of notice of general meeting ……………………………………………………………..10

14          PROCEEDINGS AT GENERAL MEETINGS
14.1       Quorum 
14.2       Lack of quorum

14.3       Chairing general meetings

14.4       Conduct of general meetings …………………………………………………………………….11
14.5       Adjournment……………………………………………………………………………………………11


15          PROXY ………………………………………………………………………………………………………………12
15.1       Appointment of proxy ……………………………………………………………………………….12
15.2       Revocation of proxy …………………………………………………………………………………12
15.3       Validity of votes of proxy …………………………………………………………………………..12
15.4       No liability……………………………………………………………………………………………….12


16          VOTING ……………………………………………………………………………………………………………..12
16.1       Entitlement to vote …………………………………………………………………………………..12
16.2       Proxy vote to be identified…………………………………………………………………………13
16.3       Voting on resolution …………………………………………………………………………………13
16.4       Objection to right to vote …………………………………………………………………………..13
16.5       Minutes…………………………………………………………………………………………………..13
16.6       Casting vote ……………………………………………………………………………………………13
16.7       When a poll is required

17          POLL

18          APPOINTMENT AND REMOVAL OF DIRECTORS………………………………………………….14
18.1       Constitution and Membership of the Board ………………………………………………….14
18.2       Election of Directors …………………………………………………………………………………14
18.3       Confirmation of appointment ……………………………………………………………………..14
18.4       Casual Vacancies ……………………………………………………………………………………15
18.5       Removal of Director …………………………………………………………………………………15
18.6       Cessation of Directorship ………………………………………………………………………….15
18.7       Resignation of Directors……………………………………………………………………………16
18.8       Secretary………………………………………………………………………………………………..16
18.9       Chair………………………………………………………………………………………………………16
19          POWERS AND DUTIES OF BOARD………………………………………………………………………16
20          NEGOTIABLE INSTRUMENTS ……………………………………………………………………………..16
21          MANAGING DIRECTOR……………………………………………………………………………………….16
22          REMUNERATION AND REIMBURSEMENT FOR EXPENSES………………………………….16
22.1       Remuneration of Director ………………………………………………………………………….16
22.2       Reimbursement of expenses …………………………………………………………………….17
23          BOARD MEETINGS……………………………………………………………………………………………..17
23.1       Convening meetings ………………………………………………………………………………..17
23.2       Notice of meetings …………………………………………………………………………………..17
23.3       Omission to give notice
23.4       Quorum at meetings
23.5       Chair of meetings
23.6       Passing resolutions at meetings
23.7       Casting vote
23.8       Conduct of meetings
23.9       Written resolutions
23.10     Minutes of meetings
23.11     Delegation by Board to Sub-committee
24          DIRECTOR’S INTERESTS
25          MANLY SEA EAGLES
25.1       Shares in Manly Sea Eagles
25.2       Appointment of Directors to the Manly Sea Eagles……………………………………….20
25.3       Preference Share consent ………………………………………………………………………..20
26          REMOVAL AND REMUNERATION OF AUDITOR……………………………………………………21
26.1       Remuneration of Auditor …………………………………………………………………………..21
27          SEAL ………………………………………………………………………………………………………………….21
28          FINANCIAL RECORDS ………………………………………………………………………………………..21
28.1       Member’s access to financial records …………………………………………………………21
28.2       Access to financial records after ceasing to be a Director ……………………………..21
29          NOTICES ……………………………………………………………………………………………………………21
29.1       General ………………………………………………………………………………………………….21
29.2       How to give a communication ……………………………………………………………………22
29.3       Communications by post…………………………………………………………………………..22
29.4       Communications by fax…………………………………………………………………………….22
29.5       Communications by email …………………………………………………………………………22
29.6       After hours communications………………………………………………………………………22
30          INDEMNITY AND INSURANCE……………………………………………………………………………..23
30.1       Indemnity………………………………………………………………………………………………..23
30.2       Documenting indemnity…………………………………………………………………………….23
30.3       Insurance ……………………………………………………………………………………………….23
31          ALTERATION OF CONSTITUTION………………………………………………………………………..23
32          FINANCIAL YEAR………………………………………………………………………………………………..23
33          NON-PROFIT CLAUSE ………………………………………………………………………………………..24
34          WINDING UP ………………………………………………………………………………………………………24

1 NAME OF CORPORATION

The name of the company is Manly-Warringah Rugby League Football Club Limited ACN 109 425 327.

2 STATUS OF THE CONSTITUTION

2.1         Constitution of Company

This is the constitution of the Company.

2.2         Replaceable Rules

This  Constitution  displaces  the  Replaceable  Rules,  accordingly,  none  of the  Replaceable Rules apply.

3 INTERPRETATION

3.1         Definitions

In this Constitution:

Auditor means the person appointed for the time being as the auditor of the Company.

Board  means  the  Directors  present  at  a  meeting,  duly  convened  as  a  Board  meeting,  at which a quorum is present.

Business Day means a day which is not a Saturday, Sunday or bank or public holiday in Sydney, New South Wales.

Chair means:

(a) the Director elected in accordance with clause 18.9 in respect of any meeting of Directors, or in accordance with clause 23.5 in relation to a  meeting of Directors; or

(b) any  person  elected  to  chair  any  general  meeting  of  the  Company  in  accordance with clause 14.3.

Company means Manly-Warringah Rugby League Football Club Limited ACN 109 425 327 of 7-9 Federal Parade, Brookvale, New South Wales.

Constitution means the constitution for the time being of the Company as constituted by this document and any resolutions of the Company modifying this document.

Continuous Voting Member means:

(a) a  Member who has maintained continuous membership of the Company  in  a Voting  Membership Category at all  times throughout the  current   Membership Period and the preceding three Membership Periods in accordance with clauses 8 and 9; or

(b) until 31 December 2009, a Member who was a Member of the Company as at 31 December 2007 and has maintained continuous membership of  the Company in a Voting Membership Category at all times since 31 December 2007.

Corporations Act means the Corporations Act 2001 (Cth).

Director  means  a  person  who  is  a  director  for  the  time  being  of  the  Company  and

Directors means more than one Director.

Eligible  Voting  Member  means  a  Member  who  is  entitled  to  vote  in  accordance  with clause 16.1.

Encumbrance  means  any  mortgage,  pledge,  lien,  charge,  assignment,  hypothecation, security  interest,  title  retention,  preferential  right  or  any  other  security  agreement  or arrangement and Encumber has a corresponding meaning.

Initial Members has the meaning given to it in clause 5.2.

Junior League means the Manly-Warringah District Junior Rugby Football League.

Managing Director means any person appointed for the time being as a managing director of the Company.

Manly Sea Eagles means Manly-Warringah Sea Eagles Limited ACN 003 348 436 of 7-9 Federal Parade, Brookvale, New South Wales.

Member means a person who is, or who is registered as, a member of the Company and

Members means more than one Member.

Members  Guarantee  Amount  means  the  amount  payable  by  a  Member  in  accordance with clause 10.

Membership Period has the meaning given to it in clause 7(a).

Non-Voting Membership  Category means a membership category that does not entitle Members of that membership category to vote.

Preference Shares means the preference share in the Manly Sea Eagles allocated to the Company in accordance with clause 4(b) of the Subscription Deed.

Proposed Action has the meaning given to it in clause 25.3.

Register   of   Members  means   the   register   of  Members   maintained   pursuant   to  the Corporations Act.

Replaceable Rules means the replaceable rules applicable to a public company limited by guarantee set out in the Corporations Act.

Seal means the common seal for the time being of the Company.

Secretary means any person appointed for the time being as, or to perform the functions of, secretary of the Company.

Subscription    Deed    means    the    Manly-Warringah    Sea    Eagles    Co-operation    and Subscription  Deed  dated  28  April  2004  between  Surfside,  Manly  Sea  Eagles,  Manly-Warringah Rugby League Club Limited ACN 000 193 251 and the Company (as amended from time to time).

Subscription Fees has the meaning given to it in clause 8(b).

Surfside means Surfside Manly Football Club Pty Limited ACN 108 856 855.

Voting Membership Category means a membership category that does entitle Members of that membership category to vote.

3.2         Interpretation

In this Constitution:

(a)          the words including and include are to be construed without limitation;

(b)          a reference to legislation is to be construed as a reference to that legislation, any subordinate legislation under it, and that legislation and  subordinate legislation as amended, re-enacted or replaced for the time being;

(c)          a reference to a person includes a corporate representative appointed pursuant to section 250D of the Corporations Act;

(d)          headings  are  used  for  convenience  only  and  are  not  intended  to  affect  the interpretation of this Constitution; and

(e)          a word or expression defined in the Corporations Act and used, but not defined, in this Constitution has the same meaning given to it in the Corporations Act.

4            OBJECTS AND PURPOSE

The objects and purpose of the Company are to:

(a)          assist  generally  in  the  promotion,  development,  conduct  and  propagation  of  the game of rugby league in the Manly Warringah district or elsewhere;

(b)          oversee  and  assist  the  Junior  League,  including  where  necessary,  to  mediate and/or arbitrate disputes involving members of the Junior League or organisations affiliated with the Junior League or members thereof;

(c)          propagate the game of rugby league by acquiring and holding shares in the Manly Sea Eagles; and

(d)          do all things necessary and convenient to achieve those objects.

5            MEMBERS

5.1         Eligibility for Membership

A person is entitled to become a Member if that person:

(a)          is a natural person;

(c)          agrees to assume the liability to pay the Member’s Guarantee Amount;

(d)          except  as  provided  in  clause  5.3(b),  has  been  approved  for  membership  by  the Board; and

(e)          has been entered into the Register of Members in accordance with clause 12.

5.2         Initial Members

The Company’s initial Members are to be:

(a)          the  members  of  the  Manly  Sea  Eagles  on  the  date  the  Manly  Sea  Eagles  was converted  from  a  public  company  limited  by  guarantee  to  a  public  company limited by shares and who complete an application for membership in accordance with clause 5.3(a); and

(b)          a person who was a Life Member of the Manly Sea Eagles immediately prior to the  registration  of  the  Company  is  taken  to  be  a  Life  Member  of  the  Company upon the registration of the Company and completion of an application form in accordance with clause 5.3(a),

(together, Initial Members).

5.3         Application for Membership

(a)          An application to be a Member of the Company must:

(i)          be made in writing in such form as prescribed by the Board;

(ii)         be lodged with the Secretary;

(iii)        contain   an   undertaking   to   be   bound,   in   the   event   of   the   person’s admission as a Member, by the terms of this Constitution as may be in force from time to time;

(iv)        be accompanied by the sum payable under this Constitution by a Member as the annual membership fee for the relevant category of membership.

(b)          If the applicant was a member of the Manly Sea Eagles immediately prior to the registration of the Company, the applicant becomes a Member of the Company, without  the  need  for  approval  by  the  Board,  when  the  Secretary  enters  the applicant’s name in the Register of Members.

(c)          Except  as  provided  in  clause  5.3(b),  the  Secretary  must,  as  soon  as  practicable after  receiving  an  application  for  membership  under  clause  5.3(a)  and  in  any event  not  more  than  5  Business  Days  after  receipt  of  an  application,  refer  the application to the Board.

(d)          The Board must determine whether to approve or reject the application within 14 Business Days after receipt of the application.

(e)          If the Board determines to approve an application for membership, the Secretary must,  as  soon  as  practicable  after  that determination  and  in  any  event  not  more than 5 Business Days after that determination:

(i)          notify the applicant of that approval; and

(ii)         enter the applicant’s name in the Register of Members.

(f)          If  the  Board  determines  to  reject  an  application  for  membership,  the  Company Secretary must, as soon as practicable after that determination and in any event not more than 5 Business Days after that determination:

(i)          notify the applicant of that rejection; and

(ii)         refund any monies paid by the applicant in respect of their application, but is not required to supply reasons for the Board’s determination.

5.4         Rights of members are non-transferable

The rights and obligations of a Member:

(a)          are personal and are not transferable; and

(b)          terminate on cessation of the person’s membership.

6            LIFE MEMBERS

6.1         Nomination

Nominations for election to life membership must:

(a)          be made in writing;

(b)          bear the signatures of the proposer and seconder, both of whom must be Eligible Voting Members;

(c)          be accompanied by the written consent of the nominee (which may be endorsed on the form of the nomination);

(d)          include a statement by the proposer as to the nominee’s qualifications for election; and

(e)          be delivered to the Secretary by the 31st day of October in each year.

6.2         Consideration

(a)          The   following   persons   shall   be   eligible   to   become   Life   Members   of   the Company:

(i)          a Member who has completed 10 consecutive years as a player for the Manly Sea Eagles in the full time NRL squad (or equivalent);

(ii)         a Member who has played 200 or more first grade games for the Manly Sea Eagles;

(iii)        a  Member  who  has  served  on  the  Board  of  the  Company  for  12 consecutive years; or

(iv)        a Member whom a 75% majority of the Board consider should, having regard to his or her exceptional service to the Company or the Manly Sea Eagles in any capacity, be eligible for election as a Life Member,

(b)          (i)          Each Member nominated in accordance with clause 6.1 that is eligible to become  a  Life  Member  in  accordance  with  clause  6.2(a)  must  be approved by the Board for further consideration; and

(ii)         if there are no more than two nominees approved by the Board for further consideration  in  accordance  with  clause  6.2(b)(i)  then  those  nominees must be submitted for election by special resolution of the Members at the next annual general meeting of the Company.

(c)          If more than two nominees are approved by the Board for further consideration in accordance  with  clause  6.2(b)(i),  the  Board  may  conduct  a  ballot  to  determine which two nominees only may be submitted for election by special resolution at the next annual general meeting of the Company.

6.3         Election

At an annual general meeting, a nominee for election to Life Membership of the Company is not entitled to be present whilst the meeting is considering the special resolution for their election.

6.4         Rights of Life Members

A Life Member:

(a)          is  entitled  to  and  retains  all  the  rights  and  privileges  of  membership  of  the Company, including the right to vote for life;

(b)          is entitled to election to the Board with full voting power; and

(c)          is exempt from payment of the Subscription Fees.

7            MEMBERSHIP PERIOD

(a)          The membership period of the Company in each year commences on the 1st day of January in each year and ends on the 31st day of December in that year, except as provided in clause 7(b) (Membership Period).

(b)          Prior  to  the  end  of  the  Membership  Period  in  any  year,  the  Board  may,  in  its absolute discretion extend the current Membership Period until such date, being no later than the 30th day of June in the next year.

8            FEES AND SUBSCRIPTIONS

(a)          Membership  of  the  Company  is  to  be  divided  into  such  categories  as  may  be determined by the Board.

(b)          The Board is to determine the annual membership fee payable, if any, in respect of  each  membership  category  (Subscription  Fees)  and  the  appropriate  time  for payment.

(c)          The annual membership fee for Life Members is nil.

(d)          Members  must  pay  the  Subscription  Fees,  as  determined  under  clause  8(b), appropriate for the Member’s category of membership.

(e)          Each membership category, as determined by the Board under clause 8(a), shall be a Non-Voting Membership Category unless the membership category has been designated  as  a  Voting  Membership  Category  by  resolution  of  the  Board  or  in accordance with this Constitution.

(f)          Notwithstanding any other clauses of this Constitution, the membership category of Life Membership shall always be a Voting Membership Category.

9            CONTINUITY OF MEMBERSHIP

(a)          A  Member   who  pays  their  Subscription  Fees  for  the  relevant  category  of membership for the Membership Period in accordance with clause 8, by the 30th day of April each year or such other later date as determined by the Board is taken to have maintained continuous membership of the Company since the end of the previous Membership Period.

(b)          If a Member does not pay the Subscription Fees, then they are to be taken to have resigned, in accordance with clause 11.2(c).

10          MEMBERS’ LIABILITY

The liability of a Member to contribute towards the payment of debts and liabilities of the Company or the costs, charges and expenses of the winding up of the Company is limited to $100 for each Member.

11          CESSATION OF MEMBERSHIP

11.1       Cessation of Membership of a natural person

A person ceases to be a Member:

(a)          if the person resigns as a Member in accordance with this Constitution;

(b)          if the person ceases to satisfy the eligibility requirements for membership under this Constitution;

(c)          if the person is expelled as a Member in accordance with this Constitution;

(d)          if the person dies;

(e)          if  the  person  is  subject  to  assessment  or treatment  under  any  mental  health  law and the Board resolves that the person should cease to be a Member;

(f)          if the person’s whereabouts are unknown for more than 12 months and the Board resolves that the person should cease to be a Member; or

(g)          if the person becomes a bankrupt.

11.2       Resignation of Member

(a)          A Member must resign from the Company by giving the Board at least 30 days’ notice and in accordance with this clause 11.2.

(b)          A  Member  who  has  paid  the  Subscription  Fee  in  respect  of  the  Member’s membership may resign from membership of the Company by first giving to the Secretary written notice of at least one month (or such other period as the Board may determine) of the Member’s intention to resign, and, on the expiration of the period of notice, the Member ceases to be a member.

(c)          A Member from the previous year, who has not, by April 30th of the then current year or such other later date as determined by the Board, paid the Subscription Fee payable  in  respect  of  the  then  current  year  under  clause  8(d),  is  taken  to  have resigned    their    membership    on    December    31st    of    the    previous    year, notwithstanding the fact that the Member may not have given written notice to the Company of their intention to resign their membership.

11.3       Effect of cessation/resignation

If a Member ceases to be a Member under clauses 11.1 or 11.2 and in every other case where a Member ceases to hold membership, the Secretary must make an appropriate entry in  the  Register  of  Members  recording  the  date  on  which  the  Member  ceases  to  be  a Member.

11.4       Expulsion of Member

If  the  Board  resolves  that  it  is  not  in  the  best  interests  of  the  Company  for  a  person  to remain as a Member, that person is automatically expelled as a Member.

12          REGISTER OF MEMBERS

The Secretary must maintain a Register of Members setting out:

(a)          the name and address of each Member; and

(b)          the date on which each person became a Member; and

(c)          in respect of each person who has ceased to be a Member, the date on which that person ceased to be a Member.

13          GENERAL MEETINGS

13.1       Annual general meetings

(a)          The Company must hold its first annual general meeting within 6 months after its incorporation.

(b)          Subject to clause 13.1(a), and the Corporations Act, the Company must, at least once  in  each  calendar  year  and  within  five  months  after  the  expiration  of  each financial  year  of  the  Company,  convene  an  annual  general  meeting  of  its members.

(c)          Subject to clause 13.1(b), the  annual  general  meeting  of  the  Company  is  to  be convened on such date and at such place and time as the Board thinks fit.

(d)          In addition to any other business which may  be  transacted at  an annual  general meeting,  the  business  of  an  annual  general  meeting  may  include  the  following, even if not referred to in the notice of meeting:

(i)          the  consideration  of  the  annual  financial  report,  directors’  report  and auditor’s report;

(ii)         the election of Directors;

(iii)        the appointment of the auditor;

(iv)        the fixing of the auditor’s remuneration.

(e)          An annual general meeting must be specified as such in the notice convening it.

13.2       Board convening a general meeting

The  Board  or  a  Director  may,  whenever  it  thinks  fit,  convene  a  general  meeting  of  the Company.

13.3       Meetings requested by Members

(a)          If  the  Board  receives  a  request  from  Members  with  at  least  five  percent  of  the votes that may be cast at any general meeting or at least 100 Members who are entitled to vote at that general meeting, the Board must convene a general meeting within 21 days after the date of receipt of that request.

(b)          The  request  must  detail  any  proposed  resolution,  the  names  of  the  Members requesting the meeting and be signed by all of the Members making the request. For this purpose, signatures of the Members may be contained in more than one document.

(c)          A  general  meeting  requested  by  the  Members  must  be  held  no  later  than  two calendar months after the request is received.

13.4       Notice of general meeting

Subject to the provisions of the Corporations Act relating to agreements for shorter notice, at least 21 days’ notice of a general meeting must be given to the Members, Directors and Auditor.  The notice must:

(a)          state the date, time and place (or places) of the meeting;

(b)          state the general nature of the business to be conducted at the meeting;

(c)          state any proposed resolutions;

(d)          state the names of proxies that have been appointed (if any); and

(e)          contain a statement informing the Members of the right to appoint a proxy.

13.5       Postponement and cancellation of general meeting

(a)          Subject to this Constitution and the Corporations Act, the Board may change the place (or places) of, postpone or cancel a general meeting.

(b)          If a general meeting is convened pursuant to a request by Members, the Directors may  not  postpone  or  cancel  the  general  meeting  without  the  consent  of  the requesting Members.

13.6       Notice of change, postponement or cancellation of meeting

(a)          If the Board changes the place (or places) of a general meeting, notice must be given to each Member and each person entitled to receive notice of the meeting of the new place (or places) of the meeting.

(b)          If the Board postpones a general meeting, notice must be given to each Member and each other person entitled to receive notice of the new date, time and place (or places) of the meeting.

(c)          If the Board cancels a general meeting, notice must be given to each Member and each other person entitled to receive notice of general meetings.

13.7       Omission to give notice relating to general meeting

No resolution passed at or proceedings at any general meeting will be invalid because of any unintentional omission or error in giving or failure to give notice of:

(a)          that general meeting;

(b)          any change of place (or places) of that general meeting;

(c)          postponement of that general meeting; or

(d)          resumption of that adjourned general meeting.

13.8       Form of notice of general meeting

Notice  of  a  general  meeting  may  be  given  by  posting  a  notice,  which  satisfies  the requirements  of  clause  13.4  of  this  Constitution,  on  the  website  of  the  Company  or  the website of the Manly Sea Eagles.

14          PROCEEDINGS AT GENERAL MEETINGS

14.1       Quorum

(a)          A quorum at a general meeting is 35 or more Members present in person or by proxy.  The quorum must be present at all times during the general meeting.

(b)          If a Member has appointed more than one proxy and two or more proxies attend a general meeting, only one proxy will be counted for the purposes of determining whether there is a quorum.

14.2       Lack of quorum

(a)          If a quorum is not present within 30 minutes after the time appointed for a general meeting or any longer period of time as the Chair may allow, the general meeting:

(i)          if convened on the request of Members, is dissolved; or

(ii)         in any other case:

(A)         is adjourned to be resumed on a day, time and place (or places) as  the  Chair  determines  or  if  the  Chair  is  not  present  as  the Directors at the meeting may determine; or

(B)         if the Directors do not so determine, no Director is present or no Director present determines:

(1)         the  date  for  the  resumption  of  the  adjourned  general meeting will be on the same day in the next week;

(2)         the  time  for  the  resumption  of  the  adjourned  general meeting  will  be  at  the  same  time  as  the  adjourned meeting; and

(3)         the   place   (or   places)   for   the   resumption   of   the adjourned general meeting, will be at the same place (or places) as the adjourned meeting.

(b)          If  a  quorum  is  not  present  within  30  minutes  after  the  time  appointed  for  the resumption  of  the  adjourned  general  meeting  or  ceases  to  be  present  during  the meeting, the general meeting is dissolved.

14.3       Chairing general meetings

(a)          The Chair of Directors is to chair each general meeting of the Company.

(b)          If the Chair of Directors is absent or unwilling to act, the Members present must elect to preside as chairperson at the meeting:

(i)          another Director who is present and willing to act; or

(ii)         if no Director is present and willing to act, a Member who is present and willing to act.

14.4       Conduct of general meetings

The Chair of each general meeting has charge of conduct of that meeting, including the procedures to be adopted and the application of those procedures at that meeting.

14.5       Adjournment

(a)          The  Chair  of  a  general  meeting  at  which  a  quorum  is  present  may,  with  the consent  of  the  Members  present  in  person  or  by  proxy  adjourn  the  general meeting.

(b)          If  a  majority  of  Members  present  at  a  general  meeting  in  person  or  by  proxy determine  that  the  meeting  should  be  adjourned,  the  Chair  must  adjourn  the meeting to a date, time and place (or places) determined by the Members.

(d)          No  business  may  be  transacted  on  the  resumption  of  the  adjourned  general meeting other than the business left unfinished at the adjourned general meeting.

(e)          When a general meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of an original meeting.

15          PROXY

15.1       Appointment of proxy

(a)          A  Member  who  is  entitled  to  attend  and  to  vote  at  a  general  meeting  of  the Company  may  appoint  a  person  as  proxy  to  attend,  speak  and  vote  for  that Member.    The  instrument  appointing  a  proxy  may  restrict  the  exercise  of  any power.

(b)          A proxy may be, but does not have to be, a Member.

(c)          A proxy is not entitled to vote on a show of hands.

15.2       Revocation of proxy

The appointment of a proxy may be revoked by the Member who appointed the proxy by notice  to  the  Company  from  the  Member  or,  as  the  case  may  be,  the  duly  authorised attorney  of  the  Member,  stating  that  the  appointment  of  a  proxy  is  revoked  or  by appointing a new proxy.

15.3       Validity of votes of proxy

A vote cast by a proxy will be valid unless before the start of a general meeting (or, in the case  of  an  adjourned  general  meeting,  before  the  resumption  of  the  adjourned  general meeting) at which a proxy votes:

(a)          the Member who appointed the proxy ceases to be a Member; or

(b)          the Company receives notice of:

(i)          the revocation of the instrument appointing the proxy;

(ii)         the appointment of a new proxy; or

(iii)        the  revocation  of  any  power  of  attorney  under  which  the  proxy  was appointed.

15.4       No liability

The Company is not responsible for ensuring that any directions provided in the instrument appointing the proxy or the way in which a proxy is to vote on a particular resolution are complied with, and accordingly is not liable if those directions are not complied with.

16          VOTING

16.1       Entitlement to vote

(a)          A Member is eligible to vote if the Member:

(i)          is a Continuous Voting Member; or

(ii)         is a Life Member pursuant to clauses 5.2(b) or 6; and

has attained the age of 18 years and has paid the Subscription Fees payable by the Member in respect of the Member’s membership.

(b)          Each  Member  entitled  to  vote  at  a  general  meeting  may  vote  in  person  or  by proxy.  Each Member has one vote, whether on a show of hands, or on a poll.

16.2       Proxy vote to be identified

Before a vote is taken the Chair must inform the Members present whether any proxy votes have been received and, if so, how the proxy votes are to be cast.

16.3       Voting on resolution

At  any  general  meeting,  a  resolution  put  to  a  vote  must  be decided  by  a  show  of  hands unless a poll is demanded in accordance with this Constitution.

16.4       Objection to right to vote

(a)          A challenge to a right to vote at a general meeting:

(i)          may only be made at that general meeting; and

(ii)         must be determined by the Chair.

(b)          A decision made by the Chair in relation to a challenge to a right to vote is final.

16.5       Minutes

Unless a poll is demanded in accordance with this Constitution, a declaration by the Chair that a resolution has, on a show of hands, been:

(a)          carried;

(b)          carried unanimously;

(c)          carried by a particular majority; or

(d)          lost or not carried by a particular majority,

is  conclusive  evidence  of  the  fact  declared.  An  entry  to  that  effect  made  in  the  minutes book of the Company signed by the Chair is evidence of that fact unless the contrary is proved.

16.6       Casting vote

If on any resolution an equal number of votes is cast for and against a resolution, the Chair has a casting vote in addition to any vote cast by the Chair as a Member.

16.7       When a poll is required

A poll must be taken in respect of a resolution referred to in clause 25.1(c).

17          POLL

At a general meeting, a poll may be demanded on any resolution:

(a)          by the Chair of the general meeting; or

(b)          by at least 5 Members entitled to vote on the resolution,

and the demand for the poll may be withdrawn.

18          APPOINTMENT AND REMOVAL OF DIRECTORS

18.1       Constitution and Membership of the Board

(a)          The Board is to consist of:

(i)          six ordinary Directors, each of whom is to be elected in accordance with

clause 18.2; and

(ii)         the Secretary, ex officio.

(b)          Each Director, other than   Secretary, will hold office until the conclusion of the second annual general meeting following the date of the Member’s election, but such Director will be eligible for re-election as a Director at that annual general meeting.

(c)          All Directors, other than the   Secretary, must be Eligible Voting Members of the Company.

18.2       Election of Directors

(a)          Only  Eligible  Voting  Members  of  the  Company  are  qualified  to  be  nominated, elected and hold office as a Director of the Company.

(b)          Nominations of candidates for election as Directors of the Company:

(i)          must  be  made  in  writing,  signed  by  2  Eligible  Voting  Members  of  the Company  and  accompanied  by  the  written  consent  of  the  candidate (which may be endorsed on the form of the nomination); and

(ii)         must  be  delivered  to  the  Secretary  by  31  October  each  year  that  an election is to be held at the annual general meeting.

(c)          If  insufficient  nominations  are  received  to  fill  all  vacancies  on  the  Board,  the candidates  nominated  are  taken  to  be  elected  and  further  nominations  are  to  be received at the annual general meeting.

(d)          If insufficient further nominations are received, any vacant positions remaining on the Board are to be taken as casual vacancies.

(e)          If the number of nominations received is equal to the number of vacancies to be filled, the persons nominated are taken to be elected.

(f)          If  the  number  of  nominations  received  exceeds  the  number  of  vacancies  to  be filled, a ballot is to be held.

(g)          The election of Directors must be conducted at the annual general meeting in such manner as the Board may direct.

18.3       Confirmation of appointment

(a)          An appointment of a person as a Director is not effective unless a signed consent to the appointment is provided by that person to the Company. The appointment of a person as a Director will take effect on the later of the date of appointment and the date on which the Company receives the signed consent.

(b)          If  a  person  is  appointed  as  a  Director  by  the  Board  the  person  ceases  to  be  a Director at the conclusion of the next annual general meeting at which an Election of Directors is held following the date of the appointment.

18.4       Casual Vacancies

The Board may by resolution at a Board meeting appoint an Eligible Voting Member of the  Company  as  a  Director,  as  an  additional  Director  or  to  fill  the  office  of  a  Director vacated when a Director ceases to be a Director.

18.5       Removal of Director

(a)          The Company may remove a Director by resolution at a general meeting.

(b)          At  least  two  months’  notice  must  be  given  to  the  Company  of  the  intention  to move a resolution to remove a Director at a general meeting.

(c)          If  notice  of  intention  to  move  a  resolution  to  remove  a  Director  at  a  general meeting is received by the Company, that Director must be given a copy of the notice as soon as practicable.

(d)          The Director must be informed that the Director:

(i)          may  submit  a  written  statement  to  the  Company  for  circulation  to  the Members before the meeting at which the resolution is put to a vote; and

(ii)         may speak to the motion to remove him/her as a Director at the general meeting at which the resolution is to be put to vote.

(e)          At least 21 days’ notice must be given to the Members of a general meeting at which the resolution for the removal of a Director is proposed.   The notice must set out the proposed resolution and the grounds for the proposed resolution.

18.6       Cessation of Directorship

A person ceases to be a Director and the office of Director is vacated if the person:

(a)          is removed from office as a Director by a resolution of the Company at a general meeting;

(b)          resigns as a Director in accordance with this Constitution;

(c)          is subject to assessment or treatment under any mental heath law and the Board resolves that the person should cease to be a Director;

(d)          dies;

(e)          is disqualified from acting as a Director under the Corporations Act; or

(f)          is  absent  from  3  successive  Board  meetings  without  leave  of  absence  from  the Board and the Board does not resolve that the Director should not cease to be a Director.

18.7       Resignation of Directors

A Director may resign from the office of Director by giving notice of resignation to the Company at its registered office.

18.8       Secretary

The Board may appoint such person as it thinks fit as Secretary to administer the Company on such terms and remuneration as the Board may determine.

18.9       Chair

The Directors and the Secretary may from time to time elect from amongst their Members a Chair of the Board.

19          POWERS AND DUTIES OF BOARD

(a)          Subject  to  this  Constitution  and  the  Corporations  Act,  the  activities  of  the Company are to be managed by, or under the direction of, the Board.

(b)          Subject to this Constitution and the Corporations Act, the Board may exercise all powers of the Company that are not required to be exercised by the Company in a general meeting.

20          NEGOTIABLE INSTRUMENTS

All negotiable instruments and all receipts for money paid to the Company must be signed, drawn,  accepted,  endorsed  or  otherwise  executed  in  such  manner  as  the  Board  may determine.

21          MANAGING DIRECTOR

(a)          The Board may appoint one or more of the Directors to the office of Managing Director for such period, and on such terms (including as to remuneration), as the Board determines.

(b)          The Board may confer on a Managing Director any of the powers that the Board may exercise.

(c)          The  Board  may  vary  or  revoke  a  conferral  of  any  power  on  the  Managing Director.

(d)          A person ceases to be a Managing Director if they cease to be a Director.

22          REMUNERATION AND REIMBURSEMENT FOR EXPENSES

22.1       Remuneration of Director

(a)          The Directors may be paid such remuneration as is from time to time determined by the Company in general meeting.

(b)          The remuneration is deemed to accrue from day to day.

(c)          If  any  Director  is  called  upon  to  perform  extra  services  or  to  make  any  special exertion  for  the  Company,  the  Company  may,  subject  to  the  Corporations  Act,

pay additional remuneration or provide benefits to that Director as the Directors determine.

22.2       Reimbursement of expenses

Directors are entitled to be reimbursed by the Company for reasonable costs and expenses incurred  or  to  be  incurred  in  connection  with  attendance  at  meetings  of  the  Board  and committees of the Board.

23          BOARD MEETINGS

23.1       Convening meetings

(a)          In the ordinary course, the Secretary will convene Board meetings in accordance with the determinations of the Board.

(b)          A  Director  may  at  any  time  convene  a  Board  meeting  by  notice  to  the  other Directors.

23.2       Notice of meetings

(a)          Reasonable notice of each Board meeting must be given to the Directors.

(b)          Each notice must state:

(i)          the date, time and place (or places) of the Board meeting;

(ii)         the general nature of the business to be conducted at the meeting; and

(iii)        any proposed resolutions.

23.3       Omission to give notice

No resolution passed at or proceedings at any Board meeting will be invalid because of any unintentional omission or error in giving or failure to give notice of:

(a)          that Board meeting;

(b)          any change of place (or places) of that Board meeting;

(c)          postponement of that Board meeting; or

(d)          resumption of that adjourned Board meeting.

23.4       Quorum at meetings

(a)          A quorum at a Board meeting is at least four of the Directors present in person (including the Secretary).

(b)          The quorum must be present at all times during the Board meeting.

(c)          No business is to be transacted by the Board unless a quorum is present and if, within half an hour of the time appointed for the meeting, a quorum is not present, the meeting is to be dissolved.

(d)          If  the  number  of  Directors  in  office  at  any  time  is  not  sufficient  to  constitute  a quorum at a Board meeting then the remaining Director or Directors may act :

(i)          to increase the number of Directors to a number sufficient to constitute a quorum and to satisfy the minimum number of Directors required under this Constitution; or

(ii)         to convene a general meeting of the Company for that purpose.

23.5       Chair of meetings

(a)          At a meeting of the Board the Chair is to preside.

(b)          If the Chair is not present within 15 minutes after the time appointed for a Board meeting or if the Chair is unwilling or unable to act as Chair for the whole or any part of that Board meeting, the Directors present may elect a Director present to Chair that Board meeting.

23.6       Passing resolutions at meetings

(a)          A resolution of the Board or sub-committee must be passed by a majority of the votes cast by the Directors entitled to vote on the resolution.

(b)          Each Director present in person is entitled to vote and has one vote.

23.7       Casting vote

If on any resolution an equal number of votes is cast for and against a resolution, the Chair has a casting vote in addition to any vote cast by the Chair as a Director.

23.8       Conduct of meetings

The Chair of each Board meeting has charge of conduct of that meeting, of the procedures to be adopted and the application of those procedures at that meeting.

23.9       Written resolutions

The Board may pass a resolution without a Board meeting being held if all the Directors entitled to vote on the resolution sign a document containing a statement that they are in favour  of  the  resolution  set  out  in  the  document.  For  this  purpose,  signatures  can  be contained in more than one document.

23.10     Minutes of meetings

(a)          The minute books must be kept at the registered office.

(b)          The Directors may inspect the minute books at no charge between the hours of 9:00 am and 5:00 pm on any Business Day.

23.11     Delegation by Board to Sub-committee

(a)          The Board may, by instrument in writing, delegate to one or more sub-committees (consisting of such member or members of the Company as the Board thinks fit) the  exercise  of  such  of  the  functions  of  the  Board  as  are  specified  in  the instrument, other than :

(i)          this power of delegation; and

(ii)         a function which is a duty imposed on the Board by the Corporations Act or any other law.

(b)          A function the exercise of which has been delegated to a sub-committee under this clause  23.11  may,  while  the  delegation  remains  unrevoked,  be  exercised  from time to time by the sub-committee in accordance with the terms of the delegation.

(c)          A delegation under this clause 23.11 may be made subject to such conditions or limitations as to the exercise of any function, or as to time or circumstances, as may be specified in the instrument of delegation.

(d)          Despite  any  delegation  under  this  clause  23.11,  the  Board  may  continue  to exercise any function.

(e)          Any  act  or  thing  done  or  suffered  by  a  sub-committee  acting  in  exercise  of  a delegation under this clause 23.11 has the same force and effect as it would have if it had been done or suffered by the Board.

(f)          The Board may, by instrument in writing, revoke wholly or in part any delegation under this clause 23.11.

(g)          The provisions of this Constitution relating to meetings (including resolutions and minutes) and proceedings of the Board with any necessary modifications apply to the meeting of any committee of the Board except that a quorum for a meeting of any committee is from time to time to be determined by the Board.

24          DIRECTOR’S INTERESTS

A Director who has a material personal interest in a matter that is being considered at a Board meeting:

(a)          must not vote on the matter at a meeting; and

(b)          must  not  be  present  while  the  matter  is  being  considered  at  the  meeting,  and accordingly will not counted for the purposes of determining whether there is a quorum.

25          MANLY SEA EAGLES

25.1       Shares in Manly Sea Eagles

(a)          On  receipt  of  any  funds,  the  Company  must  first  apply  those  funds  to  meet  its ongoing   administrative   expenses   and   responsibilities,   and   then   as   soon   as practicable apply any remaining funds towards the purchase of ordinary shares in Manly Sea Eagles in the following manner:

(i)          if  the  issued  share capital  of Manly Sea Eagles is less than 10,000,000 ordinary  shares,  or  in  the  circumstances  contemplated  by  subparagraph

(ii) where Surfside does not wish to  sell any of its ordinary shares, the Company   must   subscribe   for   further   ordinary   shares   at   the   price determined by the board of directors of Manly Sea Eagles;

(ii)         if the issued share capital of Manly Sea Eagles is more than 10,000,000 ordinary shares, the Company must, while Surfside holds more than 15% of  the  issued  ordinary  share  capital  of  Manly  Sea  Eagles,  purchase ordinary  shares  from  Surfside,  if  Surfside  wishes  to  sell  such  ordinary shares,  for  the  higher  of  the  market  value  of  the  ordinary  shares  being acquired as determined by an independent valuer appointed by the board of directors of Manly Sea Eagles and $1.00 per ordinary share; and

(iii)        if the issued share capital of Manly Sea Eagles is more than 10,000,000 ordinary shares, and Surfside holds less than 15% of the issued ordinary share capital, the Company must subscribe for further ordinary shares at the price determined by the board of directors of Manly Sea Eagles.

(b)          The  Company  must  not  Encumber  and,  except  pursuant  to  a  share  buy  back undertaken  by  Manly  Sea  Eagles  in  accordance  with  the  Corporations  Act,  the Company  must  not  sell,  the  legal  and/or  beneficial  interest  that  it  holds  in  any shares of the Manly Sea Eagles.

(c)          Clauses  25.1(a)  and  (b)  can  only  be  altered  with  the  unanimous  consent  of  all Members.

25.2       Appointment of Directors to the Manly Sea Eagles

(a)          The  Board  may  appoint  two  persons  with  appropriate  business  qualifications, skills  and  experience  to  represent  the  Company  as  Directors  of  the  Manly  Sea Eagles.

(b)          A  person  appointed  under  clause  25.2(a)  may  or  may  not  be  a  Director  of  the Company.

(c)          The Board may revoke the appointment of a person under clause 25.2(a) at any time and may appoint another person in their place.

25.3       Preference Share consent

If the Manly Sea Eagles seeks the consent of the Company, in its capacity as the holder of the Preference Share, to undertake any action (Proposed Action) then if a majority of the Board approves of the Proposed Action then the Board must:

(a)          call a general meeting of the Company in accordance with clause 13.2; and

(b)          put the Proposed Action to the Members for approval at that general meeting by way of special resolution.

(c)          the consent of the Company, in its capacity as holder of the Preference Share, to a Proposed  Action,  cannot  be  given  by  the  Company  or  the  Board  unless  the Proposed Action has been approved by the Members in accordance with clause 25.3(b).

26          REMOVAL AND REMUNERATION OF AUDITOR

26.1       Remuneration of Auditor

The remuneration of the Auditor may be determined by the Company at a general meeting. If the remuneration is not determined at a general meeting, it may be determined by the Directors at a Board meeting.

27          SEAL

(a)          If the Company has a Seal the Directors must provide for the safe custody of the Seal (and any duplicate of it).

(b)          The Seal (and any duplicate of it) must not be used without the prior authority of the Board, and when used, the Seal must be used in accordance with any direction of the Board.

(c)          If a document is to be executed by the use of the Seal, the fixing of the Seal must be witnessed by two Directors or a Director and also the Secretary or any other person authorised by the Board.

(d)          The Company may execute a document without using a Seal if the document is signed by two Directors or a Director and also the Secretary or any other person authorised by the Board.

28          FINANCIAL RECORDS

28.1       Member’s access to financial records

(a)          The  Board  may  determine  whether  and,  if  so,  the  extent  to  which  and  at  what times  and  which  place  and  under  what  conditions  any  financial  record  or  other records of the Company may be inspected by Members.

(b)          Subject  to  clause  28.1(a),  books  containing  the  minutes  of  proceedings  of meetings of the Company’s Members will be open for inspection by any Member without charge upon 3 Business Days written notice given to the Company.

(c)          Subject to clause 28.1(a), the Register of Members must be open for inspection by any Member without charge upon 3 Business Days written notice given to the Company.

28.2       Access to financial records after ceasing to be a Director

The Board may determine that any person who is to cease or has ceased to be a Director may  continue  to  have  access  to  and  inspect  any  financial  and  any  other  record  of  the Company relating to the time during which the person was a Director.

29          NOTICES

29.1       General

Any notice, statement or other communication under this Constitution must be in writing, except that any notice convening a Board meeting does not need to be in writing.

29.2       How to give a communication

In  addition  to  any  other  way  allowed  by  the  Corporations  Act,  a  notice  or  other communication may be given by being:

(a)          personally delivered;

(b)          left at the person’s current address as recorded in the Register of Members;

(c)          sent to the person’s address as recorded in the Register of Members by pre-paid ordinary mail or, if the address is outside Australia, by pre-paid airmail;

(d)          sent by fax to the person’s current fax number for notices; or

(e)          sent by email to the person’s current email address for notices.

29.3       Communications by post

A communication is given if posted:

(a)          within Australia to an Australian address, three Business Days after posting;

(b)          in any other case, ten Business Days after posting.

29.4       Communications by fax

A communication is given if sent by fax, when the sender’s fax machine produces a report that the fax was sent in full to the addressee.   That report is conclusive evidence that the addressee received the fax in full at the time indicated on that report.

29.5       Communications by email

A communication is given if sent by email, when the information system from which the email was sent produces a confirmation of delivery report which indicates that the email has entered the information system of the recipient, unless the sender receives a delivery failure  notification,  indicating  that  the  email  has  not  been  delivered  to  the  information system of the recipient.

29.6       After hours communications

If a communication is given:

(a)          after 5:00 pm in the place of receipt; or

(b)          on a day which is a Saturday, Sunday or bank or public holiday in the place of receipt,

it is taken as having been given at 9:00 am on the next day which is not a Saturday, Sunday or bank or public holiday in that place.

30          INDEMNITY AND INSURANCE

30.1       Indemnity

(a)          To the extent permitted by the Corporations Act and subject to the Corporations Act,  the  Company  must  indemnify  any  officer,  Director  or  Secretary  or  any person who has been an officer, Director or Secretary of the Company out of the assets  of  the  Company  against  any  liability,  loss,  damage,  cost,  or  expenses incurred or to be incurred by the officer, each Director or Secretary in or arising out  of  the  conduct  of  any  activity  of  the  Company  or  in  or  arising  out  of  the proper performance of the officer’s, Director’s or Secretary’s duties including any liability, loss, damage, cost, charge and expense incurred by that officer, Director or Secretary in defending any proceedings, whether civil or criminal, which relate to anything done or omitted or alleged to have been done or omitted to be done by the  officer,  Director  or  Secretary,  in  which  judgment  is  given  in  the  officer’s, Director’s or Secretary’s favour or in which the officer, Director or Secretary is acquitted or in connection with any application in relation to any such proceedings in which relief is granted by the court to the officer, Director or Secretary.

(b)          This indemnity is not intended to indemnify any officer, Director or Secretary in respect  of  any  liability  in  respect  of  which  the  Company  must  not  give  an indemnity, and should be construed and, if necessary, read down accordingly.

30.2       Documenting indemnity

The  Company  may  enter  into  an  agreement  containing  an  indemnity  in  favour  of  any officer,  Director  or  Secretary.    The  Board  will  determine  the  terms  of  the  indemnity contained in the agreement.

30.3       Insurance

(a)          To the extent permitted by the Corporations Act and subject to the Corporations Act,  the  Company  may  pay  any  premium  in  respect  of  a  contract  of  insurance between an insurer and an officer, Director or Secretary in respect of the liability suffered  or  incurred  in  or  arising  out  of  the  conduct  of  any  activity  of  the Company and the proper performance by the officer, Director or Secretary of any duty.

(b)          If  the  Board  determines,  the  Company  may  execute  a  document  containing provisions  under  which  the  Company  agrees  to  pay  any  premium  in  relation  to such a contract of insurance.

31          ALTERATION OF CONSTITUTION

Subject to clause 25.1(c), this Constitution may be altered, rescinded or added to only by a special resolution of the Company.

32          FINANCIAL YEAR

The financial year of the Company commences on the 1st day of November in each year and ends on the 31st day of October in the following year.

33          NON-PROFIT CLAUSE

The assets and income of the Company must be applied solely in furtherance of its above mentioned objects and no portion must be distributed directly or indirectly to the Members of  the  Company  except  as  bona  fide  compensation  for  services  rendered  or  expenses incurred on behalf of the Company.

34          WINDING UP

If the Company is wound up any property that remains (after satisfaction of all debts and liabilities of the Company, the payment of the costs, charges and expenses of winding up and any adjustment of the rights of the contributories among Members) must be distributed to an entity chosen by the Members with objects similar to the objects of the Company and must not be distributed amongst the Members.