Sharing profits or proceeds prohibited without approval
104 Sharing profits or proceeds prohibited without approval
Subject to this Act, if a licensee —
enters into partnership with another person in relation to the business carried on under the licence; or
enters into any agreement or arrangement under which another person may participate in the proceeds of the business carried on under the licence; or
remunerates another person by reference to the proceeds or profits obtained from the business carried on under the licence or by reference to the quantity of liquor sold,
the licensee and that other person each commit an offence.
Penalty for this subsection: a fine of $15 000.
Subsection (1) does not apply to or in relation to any agreement or arrangement in respect to —
an occasional licence, where it is authorised under section 59(3); or
an extended trading permit, where it is approved under section 60(8); or
the provision of entertainment solely for juveniles on licensed premises or a part of licensed premises, where it is approved under section 126B(5); or
the disbursement of profits or proceeds to a person in a position of authority in a body corporate that holds a licence,
or any other agreement or arrangement that is entered into with the approval of the Director or is of a kind prescribed for the purpose of this subsection.
The Director may —
on application by a person interested in, or in the profits or proceeds of, the business conducted under the licence, approve an agreement or arrangement; or
on application by the holder of a producer’s licence or wholesaler’s licence, approve an agreement or arrangement between that holder and a person who is to act as an unlicensed agent, where the Director is satisfied that the agent is a fit and proper person to so act, under which the agent is to be remunerated by reference to the quantity of liquor sold by the agent.
An agreement or arrangement approved under subsection (3) is of no effect to the extent that it purports —
to authorise a person other than the licensee to conduct the business carried on under the licence; or
to exclude, modify or restrict any requirement, responsibility or duty imposed on the licensee by or under this Act.
This section does not prevent a licensed club from entering into a contract for the provision of services (not being for the sale or supply of liquor at the club) to, or for the benefit of, the members of the club, but the authorisation to sell liquor under the licence shall not be exercisable otherwise than through the members, officers or employees of the club.
[Section 104 amended: No. 12 of 1998 s. 73; No. 73 of 2006 s. 72, 92(2) and 110; No. 56 of 2010 s. 69; No. 20 of 2025 s. 40, 85 and 124(1).]
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