sec.4Whether association is formed or carried on for the purpose of financial gain for its members

### sec.4 Whether association is formed or carried on for the purpose of financial gain for its members An association is not formed or carried on for the purpose of financial gain for its members merely because 1 or more of the following circumstances apply to it— the association makes a financial gain, but no part of the gain is divided among, or received by, any of the association’s members; the association is established to protect or regulate a trade, business, industry or calling (the pursuit ) engaged in by its members, or in which they are interested, but the association does not itself engage or take part in the pursuit; the association provides its members with facilities or services; the association trades with its members, but the trade is ancillary to its principal purpose; the association trades with the public, but the trade is ancillary to the association’s principal purpose and is not substantial when compared with its other activities; the association makes a financial gain from— trading to which paragraph (d) or (e) applies; or charging admission fees to displays, exhibitions, contests, sporting fixtures or other occasions conducted to promote its objects; or charging subscriptions to further its objects; or receiving donations to further its objects; the members of the association are entitled to divide the property of the association between them on its dissolution; a member of the association— receives a salary as an employee or officer of the association; or makes a financial gain from the association to which a non-member, acting instead of the member, would equally be entitled; or receives a trophy or prize (other than money) from the association because of a competition; or receives temporary assistance because of illness, injury or bereavement or other financial hardship suffered by the member. If a person receives a financial gain from an association because of the membership of the association of someone else (the member ), the financial gain is taken to have been received by the member. In subsection (1) (b) — association includes a branch or part of the association. s 4 ins 1995 No. 7 s 5 amd 1996 No. 56 s 5 (sec.4-ssec.1) An association is not formed or carried on for the purpose of financial gain for its members merely because 1 or more of the following circumstances apply to it— the association makes a financial gain, but no part of the gain is divided among, or received by, any of the association’s members; the association is established to protect or regulate a trade, business, industry or calling (the pursuit ) engaged in by its members, or in which they are interested, but the association does not itself engage or take part in the pursuit; the association provides its members with facilities or services; the association trades with its members, but the trade is ancillary to its principal purpose; the association trades with the public, but the trade is ancillary to the association’s principal purpose and is not substantial when compared with its other activities; the association makes a financial gain from— trading to which paragraph (d) or (e) applies; or charging admission fees to displays, exhibitions, contests, sporting fixtures or other occasions conducted to promote its objects; or charging subscriptions to further its objects; or receiving donations to further its objects; the members of the association are entitled to divide the property of the association between them on its dissolution; a member of the association— receives a salary as an employee or officer of the association; or makes a financial gain from the association to which a non-member, acting instead of the member, would equally be entitled; or receives a trophy or prize (other than money) from the association because of a competition; or receives temporary assistance because of illness, injury or bereavement or other financial hardship suffered by the member. (sec.4-ssec.2) If a person receives a financial gain from an association because of the membership of the association of someone else (the member ), the financial gain is taken to have been received by the member. (sec.4-ssec.3) In subsection (1) (b) — association includes a branch or part of the association. - (a) the association makes a financial gain, but no part of the gain is divided among, or received by, any of the association’s members; - (b) the association is established to protect or regulate a trade, business, industry or calling (the pursuit ) engaged in by its members, or in which they are interested, but the association does not itself engage or take part in the pursuit; - (c) the association provides its members with facilities or services; - (d) the association trades with its members, but the trade is ancillary to its principal purpose; - (e) the association trades with the public, but the trade is ancillary to the association’s principal purpose and is not substantial when compared with its other activities; - (f) the association makes a financial gain from— (i) trading to which paragraph (d) or (e) applies; or (ii) charging admission fees to displays, exhibitions, contests, sporting fixtures or other occasions conducted to promote its objects; or (iii) charging subscriptions to further its objects; or (iv) receiving donations to further its objects; - (i) trading to which paragraph (d) or (e) applies; or - (ii) charging admission fees to displays, exhibitions, contests, sporting fixtures or other occasions conducted to promote its objects; or - (iii) charging subscriptions to further its objects; or - (iv) receiving donations to further its objects; - (g) the members of the association are entitled to divide the property of the association between them on its dissolution; - (h) a member of the association— (i) receives a salary as an employee or officer of the association; or (ii) makes a financial gain from the association to which a non-member, acting instead of the member, would equally be entitled; or (iii) receives a trophy or prize (other than money) from the association because of a competition; or (iv) receives temporary assistance because of illness, injury or bereavement or other financial hardship suffered by the member. - (i) receives a salary as an employee or officer of the association; or - (ii) makes a financial gain from the association to which a non-member, acting instead of the member, would equally be entitled; or - (iii) receives a trophy or prize (other than money) from the association because of a competition; or - (iv) receives temporary assistance because of illness, injury or bereavement or other financial hardship suffered by the member. - (i) trading to which paragraph (d) or (e) applies; or - (ii) charging admission fees to displays, exhibitions, contests, sporting fixtures or other occasions conducted to promote its objects; or - (iii) charging subscriptions to further its objects; or - (iv) receiving donations to further its objects; - (i) receives a salary as an employee or officer of the association; or - (ii) makes a financial gain from the association to which a non-member, acting instead of the member, would equally be entitled; or - (iii) receives a trophy or prize (other than money) from the association because of a competition; or - (iv) receives temporary assistance because of illness, injury or bereavement or other financial hardship suffered by the member.