120Prohibition of proprietary racing

120 Prohibition of proprietary racing

(1)  The takings, receipts, profits or gains of a registered club, however derived, are not divisible, directly or indirectly, among the individual members of the club, or any of them.

(2)  The takings, receipts, profits or gains of a registered club are to be applied only for –

(a) the benefit of racing in this State; or

(b) with the authorisation of Tasracing, a charitable, philanthropic or special purpose.

(3)  Tasracing must not give an authorisation under subsection (2)(b) unless the Racing Integrity Committee has considered the proposed authorisation and approved the giving of the authorisation.

(4)  The purpose referred to in subsection (2)(a) is taken to include –

(a) purchasing, maintaining or improving racecourses or racecourse facilities; and

(b) improving freehold property, the revenue from which is applied solely for the promotion of racing in this State; and

(c) improving the breed of horses or greyhounds in this State.

(5)  Nothing in this section prevents a registered club from –

(a) paying the principal and reasonable interest on a loan made to it by one of its members; or

(b) paying a reasonable rent for a racecourse leased by it from one of its members; or

(c) awarding advertised prizes or prize money for races held by it; or

(d) incurring reasonable expenditure for the purpose of providing entertainment for its members in common with other persons; or

(e) defraying the reasonable expenses of members who perform tasks for it.

(6)  Nothing in this section prevents a member of a registered club from receiving any payment or benefit that a club is authorised to make or award to that member under subsection (5) .

(7)  In this section –