Territorial Extent Territorial limits – vessels and aircraft Part 1: Interpretation of Key Concepts Section 19: Non-commercial society
79.This section defines the circumstances in which a society is to be treated as non-commercial for the purposes of Part 11 and Schedule 11. It also contains the definition of “private gain” for the purpose of Part 14.
80.Societies that are established for cultural or sporting purposes are deemed to be non-commercial societies under subsection (1). This is so, even if they provide benefits to individuals (subsection (3)).
81.Societies other than those with charitable or sporting purposes will only be non-commercial if their purposes are for something other than private gain. Therefore, these societies will be considered commercial, if their purpose is to provide benefit to a particular individual or individuals.
82.To illustrate, genuine societies that are set up to provide a child with medical care or sports sponsorship are likely to be non-commercial societies under this section. However, a society set up for political purposes would need to be set up to promote the party or group as a whole, rather than to have as its purpose the payment of sums to the benefit of particular individuals, for their own benefit.