The reforms also introduce a new Co-owner Agreement (COA) that will strengthen the rights and obligations of co-owners of a horse.
- The COA applies to all co-owners except for those co-owners who own an interest in a horse as a result of acquiring shares through promoter syndicates who operate under ASIC issued Australian Financial Services Licence (AFSL).
- A key principle of the new COA arrangement is that each owner agrees to be severally liable in respect of the horse ownership venture, but not jointly and severally liable. Accordingly:
- each co-owner has to pay his or her percentage share of the costs or expenses of the venture in accordance with his or her ownership of the horse; and
- if a particular co-owner defaults, the other owners do not also have to cover or contribute to the defaulting owner’s percentage share of costs or expenses as well.
Unless co-owners (other than those exempted) make other written arrangements regarding their horse ownership venture in accordance with the TOR Rules, they will be bound by the COA.
However, if co-owners wish to make other arrangements which differ from the COA, they can in writing agree to:
a) Vary specific terms of the COA (in accordance with its terms), provided they don’t exclude, vary or limit the operation of any provision of the Rules of Racing (including the TOR Rules).
b) Continue with an existing ownership agreement or enter into a new ownership agreement (which operates in conjunction with or instead of the COA), provided that they comply with the TOR Rules.
Importantly, if there is any inconsistency between any amended terms of the COA or any terms of the other agreement and the Rules of Racing (including the TOR Rules), the Rules of Racing (including the TOR Rules) will prevail to the extent of the inconsistency.
for more information on the Co-Owner Agreement (COA) Click Here