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Associations Incorporation Reform Act 2012
4Securing pecuniary profit for members
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4 Securing pecuniary profit for members
(1) For the purposes of this Act, an association is not taken to secure pecuniary profit for its members or to be formed or carried on for the purposes of securing pecuniary profit for its members merely because one or more of the following apply to the association—
(a) the association itself makes a pecuniary profit, unless that profit, or any part of it, is divided among or received by its members or some of them;
(b) the members of the association are entitled under this Act to divide its assets among themselves on its dissolution;
(c) a member of the association receives—
(i) a payment of remuneration in good faith; or
(ii) a benefit to which he or she would be entitled if he or she were not a member of the association;
(d) the members of the association—
(i) compete for trophies or prizes in contests directly related to the purposes of the association; or
(ii) receive benefits through the enjoyment of facilities or services provided by the association for social, recreational, educational or other similar purposes;
(e) the association makes payments to a member that is an incorporated association having the same or similar purposes.
(2) For the purposes of section 13(2)(a), a reference in subsection (1) to an association is taken to include a reference to a registrable body.
Under section 33, an incorporated association may not be formed or carried on for the purpose of securing pecuniary profit for its members.
Part 2—Formation of incorporated association
Division 1—Incorporation of association
5 Authority to apply for incorporation
(1) A majority of members of an association that is unincorporated and that is not a registrable body within the meaning of section 10 may—
(a) authorise a person who is at least 18 years of age and is resident in Australia to apply to the Registrar for the incorporation of the association; and
(b) approve the rules of the proposed incorporated association.
(2) For the purposes of subsection (1), a majority of members of an association is taken to have given the authorisation and approval under that subsection if—
(a) a majority of members of the association voting at a meeting of the association vote in favour of a motion to give that authorisation and approval; and
(b) at least 21 days' notice of the meeting and the intention to put the motion to a vote at the meeting has been given to all members of the association.
(3) For the purposes of subsection (2)(a), a member votes at a meeting if—
(a) the member votes in person at the meeting; or
(b) the member, if allowed, votes—
(i) by use of technology that allows the member to clearly and simultaneously communicate with other members present at the meeting; or
(ii) by proxy.