Parramatta Leagues Club and four of its former directors have been issued with show-cause notices by the NSW Independent Liquor and Gaming Authority Board relating the club's NRL salary cap breaches.
It follows the authority's consideration of a complaint by Liquor and Gaming NSW, which conducted an investigation last year.
The notices invite the four ex-directors to respond to the authority's finding that they are not "fit and proper" persons to hold key positions of a registered club.
Under the NSW Registered Clubs Act, the club could face fines up to $250,000 and the former directors could be banned from being on the governing body of any registered club in NSW for up to three years.
The next step involves the parties providing written submissions and evidence.
In July last year, the authority found the Parramatta Leagues Club board had ceased to be effective and resolved to replace it with temporary administrator, Max Donnelly.
In February, a new board was appointed with Donnelly remaining as chairman.
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