Deemed use of funds: transactions and investments treated as benefiting interested persons where adequacy thresholds are not met. Deemed use or application of funds or assets treats a non-profit organisation's resources as applied for the benefit of an interested person where ... Summary
Deemed use of funds: transactions and investments treated as benefiting interested persons where adequacy thresholds are not met.
Deemed use or application of funds or assets treats a non-profit organisation's resources as applied for the benefit of an interested person where transactions meet specified conditions: loans without adequate security or interest; assets made available without adequate rent; payments exceeding reasonable remuneration for services; services provided without adequate compensation; purchases from or sales to interested persons at inadequate consideration; diversion of funds or property above the statutory threshold; and investments in concerns where an interested person has substantial interest exceeding the prescribed share limit.
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