(1) An organisation provides
"pecuniary gain" for its members if--
(a) it carries on any activity for the
purpose of securing pecuniary gain for its members, or
(b) it has capital
that is divided into shares or stock held by the organisation's members, or
(c) it holds property in which the organisation's members have a disposable
interest (whether directly, or in the form of shares or stock in the capital
of the organisation or otherwise), or
(d) it is an organisation that is, or
is included in a class of organisations that is, prescribed by the regulations
for the purposes of this subsection.
(2) For the purposes of subsection (1)
(a), an organisation does not provide pecuniary gain for its members merely
because of any of the following--
(a) the organisation itself makes a
pecuniary gain, unless that gain or any part of it is divided among or
received by the organisation's members or any of them,
(b) the organisation
is established for the protection of a trade, business, industry or calling in
which the organisation's members are engaged or interested, but the
organisation itself does not engage or take part in, or in any part or branch
of, any such trade, business, industry or calling,
(c) members of the
organisation derive pecuniary gain through the enjoyment of facilities or
services provided by the organisation for social, recreational, educational or
other like purposes,
(d) members of the organisation derive pecuniary gain
from the organisation by way of bona fide payment of remuneration,
(e)
members of the organisation derive pecuniary gain from the organisation of a
kind which they could also derive if they were not members of the
organisation,
(f) members of the organisation compete for trophies or prizes
in contests directly related to the objects of the organisation,
(g) the
organisation provides pecuniary gain of a class prescribed by the regulations
for the purposes of this section.
