Part 13

Other special types of company etc
Chapter 9

Community amateur sports clubs

Basic concepts

Meaning of “organised on an amateur basis”
660
1
A club is “organised on an amateur basis” for the purposes of section 658 if—
a
it is non-profit making (see subsections (2) and (3)),
b
it provides for members and their guests only the ordinary benefits of an amateur sports club (see subsections (4) and (5)), and
c
its constitution provides for any net assets on its dissolution to be applied for approved sporting or charitable purposes (see subsections (6) and (7)).
2
A club is “non-profit making” for the purposes of subsection (1) if its constitution —
a
requires any surplus income or surplus gains to be reinvested in the club, and
b
does not allow the distribution of any of its assets (in cash or in kind) to members or third parties.
3
A club is not prevented from being “non-profit making” for those purposes merely because it makes donations to charities or registered clubs.
4
The following are “ordinary benefits of an amateur sports club” for the purposes of subsection (1)—
a
the provision of sporting facilities,
b
the reasonable provision and maintenance of club-owned sports equipment,
c
the provision of suitably qualified coaches,
d
the provision, or reimbursement of the costs, of coaching courses,
e
the provision of insurance cover,
f
the provision of medical treatment,
g
the reimbursement of reasonable travel expenses incurred by players and officials travelling to away matches,
h
the reasonable provision of post-match refreshments for players and match officials, and
i
the sale or supply of food or drink as a social benefit which arises incidentally from the sporting purposes of the club.
5
A club is not prevented from providing for members and their guests only the ordinary benefits of an amateur sports club for the purposes of subsection (1) merely because—
a
a member supplies goods or services to the club on an arm’s length basis, or
b
the club employs members of the club on an arm’s length basis.
6
In relation to any club, the following are “sporting or charitable purposes” for the purposes of subsection (1)—
a
the purposes of the governing body of an eligible sport for the purposes of which the club existed, for use in related community sport,
b
the purposes of another registered club, and
c
the purposes of a charity.
7
Purposes of a club are “approved” sporting or charitable purposes for the purposes of subsection (1) if they are approved by—
a
the members of the club in general meeting, or
b
the members of the club’s governing body.