All ownership arrangements must comply with the Act.
Section 115 states:
“Restrictions on size of partnerships and associations
- A person must not participate in the formation of a partnership or association that:
- has as an object gain for itself or for any of its members; and
- has more than 20 members;
unless the partnership or association is incorporated or formed under an Australian law. ……… Note: An offence based on subsection (1) is an offence of strict liability. For strict liability, see Section 6.1 of the Criminal Code”.
All ownership arrangements must also comply with the ARR.
The number of people who may register directly as the owners or lessees of a racehorse is limited to 20, EXCEPT for schemes which are eligible for the relief afforded by the ASIC Instrument.
The number of people who may register a syndicate (with the Registrar of Racehorses) and own the horse in the name of the syndicate is limited to no more than 20 [See AR.69A].
The legal relationship between the members of any arrangement owning or leasing a racehorse will typically be:
- partnership; or
- unit trust.