Western Australian Consolidated Acts

ASSOCIATIONS INCORPORATION ACT 1987 - SECT 4

4 .         Associations which are eligible for incorporation

        (1)         Subject to this Act, an association is eligible to be incorporated under this Act if it has more than 5 members and is formed —

            (a)         for a religious, educational, charitable or benevolent purpose; or

            (b)         for the purpose of promoting or encouraging literature, science or the arts; or

            (c)         for the purpose of sport, recreation or amusement; or

            (d)         for the purpose of establishing, carrying on, or improving a community, social or cultural centre, or promoting the interests of a local community; or

            (e)         for political purposes; or

            (f)         for any other purpose approved by the Commissioner.

        (2)         Notwithstanding subsection (1), an association for the purpose of trading or securing pecuniary profit to the members from the transactions of the association is not eligible to be incorporated under this Act.

        [(3)         deleted]

        (4)         An association shall not be regarded for the purposes of this Act as being for the purpose of trading or securing pecuniary profit to the members from the transactions of the association by reason only of any one or more of the following circumstances —

            (a)         that the association itself is empowered to make a pecuniary profit, unless that profit or some part of it is divided among or received by the members or some of them;

            (b)         that the association is established for the protection or regulation of some trade, business, industry or calling in which the members are engaged or interested, if the association itself does not engage or take part in any such trade, business, industry or calling, or any part or branch thereof;

            (c)         that any member of the association derives pecuniary profit from the association by way of salary as an employee or officer of the association;

            (d)         that any member of the association derives from the association any pecuniary profit to which he would be equally entitled if he were not a member of the association;

            (e)         that the members of the association compete with each other for trophies or prizes other than money prizes;

            (f)         that the association itself may or does make a profit from subscriptions, donations, sponsorship or the sale of any broadcasting rights;

            (g)         that the association provides facilities or services for its members;

            (h)         that the association trades or may trade with its members or with the public, provided that —

                  (i)         the trading is ancillary to the principal purpose of the association; and

                  (ii)         any trading with the public is not substantial in volume in relation to the other activities of the association;

                  (i)         that the association charges admission fees to displays, exhibitions, contests, sporting fixtures or other occasions organized for the promotion of the objects of the association.

        (5)         For the purposes of establishing whether an association is formed for the purpose of trading or securing pecuniary profit to the members from the transactions of the association, any pecuniary profit that by reason of a person’s membership of the association is received by any other person shall be deemed to be a pecuniary profit to the member by reason of his membership.

        (6)         If the Commissioner refuses to approve a purpose of an association under subsection (1)(f), the applicant may apply to the State Administrative Tribunal for a review of the decision of the Commissioner.

        [Section 4 amended by No. 79 of 1995 s. 67(3); No. 55 of 2004 s. 57.]