sec.5Eligibility for incorporation

### sec.5 Eligibility for incorporation An association is not eligible for incorporation under this Act if the association— has less than 7 members; or is— a corporation; or a partnership under the Partnership Act 1891 ; or an organisation under the Industrial Relations Act 2016 ; or a school council or parents and citizens association under the Education (General Provisions) Act 2006 ; or is formed or carried on for the purpose of providing financial gain for its members; or is provided for in a special Act that— incorporates— the association’s governing body; or the trustees holding property for the association; or provides the association may sue or be sued, or hold property, in the name of the association or an officer of the association; or specially regulates its affairs; or has as its main purpose the holding of property— in which its members have a disposable interest; or that the members have a right to divide between all or some of them; or for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or an association that, as its main purpose, receives and holds gifts within the meaning of the Local Government Electoral Act 2011 , section 107 for use by a member or person nominated by a member for a purpose relating to an election under that Act for distribution of the property, or income from the property, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; or has an object of raising a fund by subscription of its members to make loans to them. However, subsection (1) (e) (iv) does not make an association ineligible for incorporation if the chief executive is satisfied the association has as its main purpose the holding of property for meeting the medical, hospital, nursing and rehabilitation costs (the medical costs ), and similar and related costs, of an individual who is suffering from a serious medical condition or injury. s 5 sub 1995 No. 7 s 6 amd 1996 No. 56 s 6 ; 1997 No. 83 s 4 ; 1999 No. 27 s 76 sch 1 pt 3 ; 1999 No. 33 s 747 sch 3 ; 2006 No. 39 s 512 (1) sch 1 ; 2016 No. 63 s 1157 sch 6 ; 2017 No. 12 s 4 ; 2022 No. 27 s 74 (sec.5-ssec.1) An association is not eligible for incorporation under this Act if the association— has less than 7 members; or is— a corporation; or a partnership under the Partnership Act 1891 ; or an organisation under the Industrial Relations Act 2016 ; or a school council or parents and citizens association under the Education (General Provisions) Act 2006 ; or is formed or carried on for the purpose of providing financial gain for its members; or is provided for in a special Act that— incorporates— the association’s governing body; or the trustees holding property for the association; or provides the association may sue or be sued, or hold property, in the name of the association or an officer of the association; or specially regulates its affairs; or has as its main purpose the holding of property— in which its members have a disposable interest; or that the members have a right to divide between all or some of them; or for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or an association that, as its main purpose, receives and holds gifts within the meaning of the Local Government Electoral Act 2011 , section 107 for use by a member or person nominated by a member for a purpose relating to an election under that Act for distribution of the property, or income from the property, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; or has an object of raising a fund by subscription of its members to make loans to them. (sec.5-ssec.2) However, subsection (1) (e) (iv) does not make an association ineligible for incorporation if the chief executive is satisfied the association has as its main purpose the holding of property for meeting the medical, hospital, nursing and rehabilitation costs (the medical costs ), and similar and related costs, of an individual who is suffering from a serious medical condition or injury. - (a) has less than 7 members; or - (b) is— (i) a corporation; or (ii) a partnership under the Partnership Act 1891 ; or (iii) an organisation under the Industrial Relations Act 2016 ; or (iv) a school council or parents and citizens association under the Education (General Provisions) Act 2006 ; or - (i) a corporation; or - (ii) a partnership under the Partnership Act 1891 ; or - (iii) an organisation under the Industrial Relations Act 2016 ; or - (iv) a school council or parents and citizens association under the Education (General Provisions) Act 2006 ; or - (c) is formed or carried on for the purpose of providing financial gain for its members; or - (d) is provided for in a special Act that— (i) incorporates— (A) the association’s governing body; or (B) the trustees holding property for the association; or (ii) provides the association may sue or be sued, or hold property, in the name of the association or an officer of the association; or (iii) specially regulates its affairs; or - (i) incorporates— (A) the association’s governing body; or (B) the trustees holding property for the association; or - (A) the association’s governing body; or - (B) the trustees holding property for the association; or - (ii) provides the association may sue or be sued, or hold property, in the name of the association or an officer of the association; or - (iii) specially regulates its affairs; or - (e) has as its main purpose the holding of property— (i) in which its members have a disposable interest; or (ii) that the members have a right to divide between all or some of them; or (iii) for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or Example for subparagraph (iii) — an association that, as its main purpose, receives and holds gifts within the meaning of the Local Government Electoral Act 2011 , section 107 for use by a member or person nominated by a member for a purpose relating to an election under that Act (iv) for distribution of the property, or income from the property, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; or - (i) in which its members have a disposable interest; or - (ii) that the members have a right to divide between all or some of them; or - (iii) for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or Example for subparagraph (iii) — an association that, as its main purpose, receives and holds gifts within the meaning of the Local Government Electoral Act 2011 , section 107 for use by a member or person nominated by a member for a purpose relating to an election under that Act - (iv) for distribution of the property, or income from the property, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; or - (f) has an object of raising a fund by subscription of its members to make loans to them. - (i) a corporation; or - (ii) a partnership under the Partnership Act 1891 ; or - (iii) an organisation under the Industrial Relations Act 2016 ; or - (iv) a school council or parents and citizens association under the Education (General Provisions) Act 2006 ; or - (i) incorporates— (A) the association’s governing body; or (B) the trustees holding property for the association; or - (A) the association’s governing body; or - (B) the trustees holding property for the association; or - (ii) provides the association may sue or be sued, or hold property, in the name of the association or an officer of the association; or - (iii) specially regulates its affairs; or - (A) the association’s governing body; or - (B) the trustees holding property for the association; or - (i) in which its members have a disposable interest; or - (ii) that the members have a right to divide between all or some of them; or - (iii) for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or Example for subparagraph (iii) — an association that, as its main purpose, receives and holds gifts within the meaning of the Local Government Electoral Act 2011 , section 107 for use by a member or person nominated by a member for a purpose relating to an election under that Act - (iv) for distribution of the property, or income from the property, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; or