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CHAPTER 3 Directors and Managers Discretion

P. &. I Clubs Law and Practice

Page 21 CHAPTER 3 Directors and Managers Discretion A. GENERALLY 3.1 Pervading the whole of a typical Club Rule-book is a large element of discretion, often vested in the board of directors or the managers or sometimes, ambiguously, the “Association”. Club Rules relating to entry, membership, settlement of claims, some exceptions, calls, investments and other topics are all to be subject to decision, often discretionary, vested in the organs of management of the club. Even some of the risks “insured” against are covered only in the discretion of the directors, the most notable being the cover in respect of some types of fines 1 and so-called “omnibus” cover. 2 Indeed, the whole of F.D. & D. (“Defence” 3 ) cover is discretionary. A typical Club Rule-book has discretion “peppered all over the club’s Rules”. 4

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