Appendix A

Definitions and rules set out in the ARR relating to arrangements between 2 or more persons owning or leasing a racehorse

The ARR would appear to accommodate all forms of legal ownership of a racehorse. While an individual person can register an (ownership or leasehold) interest in that person’s own name, a business or company is required to register a syndicate name and hold the interest in that name, while also nominating an individual person as the manager of that interest.

Each of the following words is attributed a meaning in AR.1 for the purposes of the ARR:

company” means:

  1. a company incorporated or registered under the Corporations Act or any statute or ordinance of any State and/or Territory of the Commonwealth of Australia; and
  2. a ‘foreign company’ within the meaning of the Corporations Act”.

manager” means:

“a person registered with Racing Australia as the manager of a horse owned or leased by a natural person, a group of natural persons, or a Syndicate. Unless established otherwise:

  1. The first named person appearing in the Certificate of Registration or other official ownership or leasing record held by Racing Australia will be deemed to be the manager [subject to AR63(1); and
  2. If a horse is owned or leased by more than one Syndicate, the first named person appearing in the Certificate of Registration or other official ownership or leasing record held by Racing Australia will be deemed to be the manager

 “member” includes:

“any person who has an interest of any kind in a structure through which horses can be owned pursuant to these Australian Rules, including in any Syndicate”.

nominator” means

“a person authorized to nominate a horse for a race. It includes:

  1. any owner;
  2. if a horse is leased, any lessee by or on whose behalf the horse is entered;
  3. any registered manager of a company;
  4. any Syndicate Manager for a Syndicate; and
  5. any person exercising the rights of a nominator under the Rules by reason of the death of a nominator, the sale of a horse with engagements, the termination of a lease, or otherwise”.

 “person” includes:

“any Syndicate, company, combination of persons, or other organizational structure recognized by these Australian Rules which owns or races a horse/s”.

Stud” means:

“a person, company or unincorporated organization which breeds horses for racing and which during the period of 12 months immediately prior to any relevant point of time, has returned to and had accepted 5 or more mares by the Australian Stud Book and/or the Australian Register of Non-Stud Book Mares”.

“Promoter” means:

“any person or company who for valuable consideration offers or invites any other person or company to subscribe for shares or to participate in any scheme with objects that include the breeding and/or racing of a horse/s”.

“Promoter Syndicate” means:

“a Syndicate where the co-owners own their interest in a horse as a result of acquiring shares in the horse offered by a Promoter approved by a PRA and licensed under the Corporations Act and/or offered pursuant to ASIC Corporations (Horse Schemes) Instrument 2016/790 or a successor or predecessor instrument to it”.

“Syndicate” refers:

“to any one of the following structures or entities by which a horse can be owned or leased which is accepted as a Syndicate for registration under these Australian Rules:

  1. a combination of more than one but no more than 20 persons (or a combination of more than one but no more than 50 in the case of a Promoter Syndicate entitled to exemption under ASIC Corporations (Horse Schemes) Instrument 2016/790 (or any instrument, regulation or class order that replaces or supersedes that instrument:
  2. a company;
  3. an unincorporated organization (including a partnership or other form of unincorporated organization, such as an unincorporated sole trader with a business name or a Stud which has been registered as a Syndicate in the name of the Stud); or
  4. a Promoter Syndicate.”.

trainer” means:

“a person licensed or granted a permit by a PRA to train horses, and includes any persons licensed to train as a training partnership

AR.61 states:

“Only horses trained by a licensed trainer to race, official trail or jump out

  1. To be able to be entered for or run in any race or official trial or jump-out, a horse must be trained by a person with a licence to train.
  2. Subrule (1) does not apply:

    1. to a horse entered for a race where the entries close more than 60 days before the advertised date for the running of a race; and
    2. to any other race excepted under the Rules”.

AR.63 states:

“Removal of manager of a horse

  1. Subject to the Tor Rules [and/or a term of the COA, if relevant], a manager of a horse may be removed or replaced from that positionby written notice signed by the owners, lessees or Syndicate members representing more than 50% of the ownership of the horse.
  2. A manager of a horse is of their own right [and without separate express authorization by the owners, lessees or Syndicate members] entitled to:

    1. enter, nominate, accept or scratch a horse for any race;
    2. engage a jockey to ride a horse in any race;
    3. receive any prize money or trophy won by a horse;
    4. act for and represent the owners, lessees or Syndicate members in relation to the horse for the purpose of these Australian Rules;

      except that where a provision of the Tor Rules [and/or a term of the STA or the COA, if relevant] specifies a process, requirement, or course of action, that provision or term binds the manager in the event of any conflict or inconsistency with this subrule.
  3. The entry or nomination of a horse for any race must state the name of the manager.
  4. The trainer of a horse who enters, nominates, accepts or scratches a horse is, absent of proof an agreement between the trainer and owners to the contrary, deemed to have done so with the authority of the manager and all other nominees.

AR.105 states

“Matters that may affect the running of a horse in a race

  1. The trainer of a horse, or any person that is in control of a horse, that is nominated for a race must:

    1. ensure that the horse is fit and properly conditioned to race;
    2. by nominating time, report to the Stewards any occurrence, condition, surgery or treatment that may affect the horse’s performance in the race where the occurrence takes place, condition is present, surgery is performed or treatment is administered before nomination time;
    3. as soon as is practicable after nomination time and before acceptance time, report to the Stewards any occurrence, condition, surgery, or treatment that may affect the horse’s performance ij the race where the occurrence takes place, condition is present, surgery is performed or treatment is administered after nomination time and before acceptance time;
    4. if the horse is accepted for the race – as soon as practicable, report to the Stewards any occurrence, condition, surgery or treatment that may affect the horse’s performance in a race where the occurrence takes place, condition is present, surgery is performed or treatment is administered after acceptance time”.
  2. The Owner and/or trainer of a horse must:

    1. as soon as practicable after a race, report to the Stwerds anything which might have affected the running of their horse in a race; and
    2. immediately after a race, report to the Stewards:

      1. any loss or breaking of gear which occurred during the race; or
      2. any unusual happening in connection with the race.
  3. Further to subrule (2), if a trainer becomes aware of any condition or injury which may have affected the horse’s performance in the race, the trainer must report the condition or injury to the Stewards as soon as practicable and no later than acceptance time for its next race engagement”.

Schedule 2 – Trainer & Owner Reform Rules – The Tor Rules

A requirement under the TOR Rules is that the members of any ownership or leasehold arrangement (scheme) between 2 or more persons (members) to maintain, train and race a horse for their mutual benefit must have an agreement setting out the terms that will govern the legal relationship between them. The terms of the Tor Co-owners Agreement (Tor COA) are deemed to apply [EXCEPT in the case of lead regulator approved syndicates established by licensed promoters, each of which will have its own approved agreement which must comply with the requirements of the ASIC Instrument] UNLESS the members elect either to add to or amend those terms, or to exclude and replace that agreement with another agreement. The terms of the Tor COA provide for the appointment of a person to manage the common enterprise on behalf of the members.

It is also a requirement under the TOR Rules that the owner(s) or lessee(s) and the trainer enter into a training agreement setting out the terms upon which the trainer will provide training and ancillary services. The terms of the Tor Training Agreement (Tor STA) are deemed to apply UNLESS the parties elect either to add to or amend those terms, or to exclude and replace that agreement with another agreement. The terms of the Tor STA provide for the appointment of a licensed trainer to take possession and control of the horse and to care for, train and race the horse (as a whole) to best advantage for the benefit of the owner(s) or lessee(s).

Schedule 3 – Syndicate Rules

There are 14 Syndicate Rules set out in this Schedule.

“SR 1 – Members of Syndicates”

“A person is deemed to be a member of a Syndicate if the person has an ownership or lease interest with no more than 20 persons in total (or not more than 50 in total in the case of a Promoter Syndicate) in any undertaking, common enterprise, arrangement or schcme relating to the racing of one or more horses”.

“SR 2 – Requirement of manager of a Syndicate”

“In order to enter or race a horse, a Syndicate must appoint a natural person as its Syndicate manager, with that person authorized to act for and on behalf of the Syndicate (to the extent permitted by the Rules of and any agreement or instrument governing the Syndicate)”.

Racing Australia – Horse registration

The following conditions of registration are stated on the front page of the Horse Registration form:

Appointment of Manager

The manager of a horse is the first named person recorded on the Registration Application. If the first named owner is a registered syndicate, the syndicate manager is the manager of the horse.

The manager acts for and represents the other joint owners as described in the Australian Rules of Racing. A copy of the rules can be found at [www.racingaustralia.horse]. As such, the manager may sign a sign a Transfer of Ownership and Change of Share % forms on behalf of all remaining owners (being those owners who are neither relinquishing nor acquiring a share in the horse), provided there is no change to the share percentage of each remaining owner. The manager must notify all remaining owners of the transfer of ownership or change of share percentage in advance. By signing this Horse Registration form, each owner consents to any future changes to the ownership composition and structure of the horse requested by the manager, provided there are no changes to the share percentage of each remaining owner.

By signing this Horse Registration form:

  1. each owner agrees that RISA, to the maximum extent permitted by law, is not liable to make any payment for any claim, loss or liability that may arise from the manager signing a Transfer of Ownership or Change of Share % form; and
  2. the manager indemnifies RISA against any claim, loss or liability that arises from the manager signing a Transfer of Ownership or Change of Share % form on behalf of another person.

Following registration the manager can only be changed by the joint owners representing a majority interest in the horse signing and lodging with RISA a Change of Manager form (available for download at [www.racingaustralia.horse/RoR/Forms.aspx). If the manager plans to relinquish his or her interest or the new manager was not previously an owner (and there is no change to the share percentage of each remaining owner), the following procedure must be followed:

  1. the joint owners representing a majority interest in the horse must complete and sign a Change of Manager form;
  2. the new manager must notify all remaining members of the change to the ownership composition and structure;
  3. a Transfer of Ownership for must be completed and signed in accordance with the usual procedures; and
  4. the completed Change of Manager and Transfer of Ownership forms must be lodged, together with RISA or the relevant PRA.

Types of Ownership

A horse can be registered in the name of up to 20 owner entities. An entity can be a:

  • natural person
  • registered syndicate
  • company
  • firm
  • stud

Fitness and Propriety of Applicants

All individuals, including registered syndicate members, who hold a share or interest in the ownership of a racehorse are required to notify the Registrar of Racehorses if they:

  1. have been convicted of or have a pending charge against them for any offence involving violence against a person or dishonest or criminal activity in the past 10 years; or
  2. have ever been convicted under the Australian Rules of Racing or the rules of any other Racing Authority.

Details of offence must be submitted in writing prior to an application being lodged.  If an individual neglects or fails to truthfully respond to these questions, this application and any other application concerning the individual may be refused or cancelled or other penalties incurred.

Rules of Racing

As a condition of the horse’s registration being accepted, all owners noted on the registration form must familiarize themselves with and agree to be bound by the Rules of Racing, both local and Australian as amended from time to time. The Australian Rules of Racing can be viewed at [www.racingaustralia.horse].  For Local Rules of Racing please contact the relevant PRA.

Prize Money

How is Prize money paid?

Payment of prize money and GST is administered by the PRA in whose jurisdiction the horse became eligible to receive prize money. Please note EFT payments can only be made to Australian bank accounts. See below for more information about stakes payment options in each state.

Please note EFT payment can only be made to Australian bank accounts.

See below for more information about stakes payment options in each state.

NSW, ACT & QLD

When ALL owners provide their bank account details on the form, prize money will be paid via EFT directly into each owner’s bank account according to their entitlement. If an owner does not supply bank account details, all prize money will be forwarded to the Manager (Owner 1) except where an entity is GST registered for racing purposes. Where an entity is GST registered for racing purposes and supply a valid ABN and bank account, they will receive prize money together with the GST component directly into their account.

Please note a $16.50 processing fee (GST included) will be charged for all cheque payments made for NSW and ACT. QLD only pays via EFT – no payment is made by cheque.

Vic & SA

Individual entities who supply a valid bank account on the form will receive prize money directly into their account via EFT provided that the Manager (Owner 1) has also supplied their details on the form. If no bank account details are provided for any given entity, their prize money payment will be forwarded to the Manager. If the Manager has not supplied bank details, payment will be forwarded to them by cheque.

Tas

All prize money is forwarded to the Manager (Owner 1). Where bank details are provided on the form, payment will be made via EFT. If bank details are not provided, a cheque will be forwarded.  Individual entities who have elected to have their percentage of prize money paid directly to them and who supply valid bank account details on the form, will receive prize money directly into their account via EFT.

WA & NT

All prize money is paid to the Manager (Owner 1) via EFT only. Where email addresses are not supplied, an administrative fee will be charged (WA only).”