Western Australian Current Acts

ASSOCIATIONS INCORPORATION ACT 2015 - SECT 5

5 .         Associations not eligible for incorporation

        (1)         Despite section 4, an association is not eligible to be incorporated under this Act if it is formed or carried on for the purpose of securing pecuniary profit for its members from its transactions.

        (2)         An association secures pecuniary profit for its members if —

            (a)         it carries on any activity for the purpose of securing pecuniary profit for its members; or

            (b)         it has capital that is divided into shares or stock held by its members; or

            (c)         it holds property in which its members have a disposable interest, whether directly or in the form of shares or stock in the capital of the association or otherwise; or

            (d)         it is an association that —

                  (i)         is prescribed for the purposes of this subsection; or

                  (ii)         belongs to a class of associations that is so prescribed.

        (3)         An association is not ineligible under subsection (1) by reason only of any one or more of the following circumstances —

            (a)         that the association itself is empowered to make a pecuniary profit, unless that profit or some part of it is divided among or received by its members or some of them;

            (b)         that the association is established for the protection or regulation of some trade, business, industry or calling in which the members are engaged or interested (the activity ), if the association itself does not engage or take part in the activity, or any part or branch of the activity;

            (c)         that any member of the association derives pecuniary profit from the association by way of salary paid in good faith as an employee or member of the management committee of the association;

            (d)         that any member of the association derives pecuniary profit from the association by way of remuneration paid in good faith;

            (e)         that any member of the association derives from the association a pecuniary profit to which the member would be equally entitled if the member were not a member of the association;

            (f)         that the members of the association compete with each other for trophies or prizes in contests directly related to the purposes of the association;

            (g)         that the association itself may or does make a profit from subscriptions, donations, sponsorship or the sale of any broadcasting rights;

            (h)         that the members of the association derive pecuniary profit through the enjoyment of facilities or services provided by the association for social, recreational, educational or other like purposes;

                  (i)         that the association charges admission fees to displays, exhibitions, contests, sporting fixtures or other occasions organised for the promotion of the objects or purposes of the association;

            (j)         that the association provides pecuniary profit of a kind that is prescribed for the purposes of this subsection.

        (4)         For the purposes of subsection (1), a pecuniary profit that by reason of a person’s membership of the association is received by any other person is taken to be a pecuniary profit for the member by reason of the person’s membership of that association.