24When society does not have financial gain purpose

1. A society (or proposed society) does not have a purpose of being carried on, and is not being carried on, for the financial gain of any of its members merely because it will or may—

2. engage in trade:
3. pay a member for matters that are incidental to the purposes of the society, and the member is a not-for-profit entity:
4. distribute funds to a member to further the purposes of the society (or proposed society), and the member—
   1. is a not-for-profit entity; and
   2. is affiliated or closely related to the society (or proposed society); and
   3. has the same, or substantially the same, purposes as those of the society (or proposed society):
5. reimburse a member for reasonable expenses legitimately incurred on behalf of the society or while pursuing the society’s purposes:
6. provide benefits to members of the public, or of a class of the public, including members of the society or their families:
7. provide benefits to members or their families to alleviate hardship:
8. provide educational scholarships or grants to members or their families:
9. pay a member a salary, wages, or other payments for services, or enter into any other transaction with a member, on arm’s-length terms (see subsection (3)):
10. provide a member with incidental benefits (for example, trophies, prizes, or discounts on products or services) in accordance with the purposes of the society:
11. have its surplus assets distributed under subpart 5 of Part 5 to a member that is a not-for-profit entity:
12. amalgamate with or into another society under subpart 2 of Part 5 (with the result that the amalgamated society succeeds to any gain, profit, surplus, dividend, or other financial benefit of the amalgamating society):
13. in the case of a union,—
    1. negotiate or arrange, in the ordinary course of promoting its members’ collective employment interests, the salaries, wages, or other terms or conditions of employment of its members; or
    2. do any other thing in the ordinary course of its activities as a union.

14. In addition, a society (or proposed society) does not have a purpose of being carried on, and is not being carried on, for the financial gain of any of its members merely because it is established for the protection or regulation of some trade, business, industry, or calling in which the members are engaged or interested, if the society itself does not engage or take part in the trade, business, industry, or calling, or any part or branch of it.

15. In subsection (1)(h), salary, wages, or other payments for services, or other transactions, are on arm’s-length terms if—

16. the terms—
    1. would be reasonable in the circumstances if the parties were connected or related only by the transaction in question, each acting independently, and each acting in its own best interests; or
    2. are less favourable to the member than the terms referred to in subparagraph (i); and
17. the salary, wages, or other payments for services, or other transaction, does not include any share of a gain, profit, or surplus, percentage of revenue, or other reward in connection with any gain, profit, surplus, or revenue of the society.