ASSOCIATIONS INCORPORATION ACT 1985 - SECT 55

ASSOCIATIONS INCORPORATION ACT 1985 - SECT 55

55—Prohibition against securing profits for members

        (1)         Unless the Commission otherwise approves, an incorporated association must not conduct its affairs in a manner calculated to secure a pecuniary profit for the members of the association or any of them, or for associates of the members or any of them.

        (2)         Unless the Commission otherwise approves, an incorporated association must not make a payment from its income or capital, or dispose of any of its assets in specie , to the members of the association or any of them, or to associates of the members or any of them.

        (3)         Subsection (2) does not apply—

            (a)         to reasonable remuneration of a member of the association for work done by the member for or on behalf of the association; or

            (b)         to any payments or dispositions that are incidental to activities carried on by the association in accordance or consistently with its objects.

        (4)         An officer of an incorporated association who is knowingly concerned in or party to a contravention of subsection (1) or (2) is guilty of an offence.

Maximum penalty: $5 000 or imprisonment for one year.

        (5)         The approval of the Commission under this section may be granted on such conditions as the Commission thinks fit and may, by instrument in writing, be varied or revoked by the Commission.