2. Powers of an Incorporated Association
The effect of incorporation, generally, is to give an association a similar legal status to that of a natural person.
The Act specifically provides that an incorporated association may do all things that are necessary or convenient for carrying out its objects and purposes. In particular, it may:
- acquire, hold, deal with, and dispose of any real property (land) or personal property (goods, shares, etc);
- open and operate bank accounts;
- invest its money ;
- as trust funds may be invested under Part III of the Trustees Act 1962; or
- in any other manner authorised by the rules of the association;
- borrow money upon such terms and conditions as the association thinks fit;
- give such security for liabilities incurred by the association as the association thinks fit (eg a mortgage);
- appoint agents to transact any business of the association on its behalf; and
- enter into any other contract it considers necessary or desirable.
An incorporated association is not limited to doing only these things. In addition it can do almost any lawful act so long as it is necessary or convenient for carrying out the association's objects or purposes.
So it would seem that, just like a natural person, an association can operate a business as part of its activities, but are there any limitations on running a business under the Act, and can it make a profit?