Not for profit organisation
6 Not for profit organisation
The Association must not distribute any surplus, income or assets directly or indirectly to its members.
Subrule (1) does not prevent the Association from paying a member—
reimbursement for expenses properly incurred by the member; or
for goods or services provided by the member—
if this is done in good faith on terms no more favourable than if the member was not a member.
Note
Section 33 of the Act provides that an incorporated association must not secure pecuniary profit for its members. Section 4 of the Act sets out in more detail the circumstances under which an incorporated association is not taken to secure pecuniary profit for its members.
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