Sunday 5 April 2015

Types of organizations in eSports

Since an organisation is ultimately the result of societal needs and shares collective goals that are linked to both its internal and external environment, such organisations can take many different forms.

There are a variety of legal types of organisations (although we will only be looking at those used for eSports), however, since sport in South Africa is governed by the Sports and Recreation Act of 1988 (as amended), the types of organisations that may be used are regulated by South African law. Such organisations may be:
  • companies, being associations incorporated in terms of the Companies Act,
  • national federations made up of associations,
  • provincial federations made up of associations,and
  • clubs made up of associations or individuals.

Essentially, any organisation that does not have a constitution or founding documents in line with the South African Companies Act is either run as a partnership (if ownership is jointly claimed by more than one person, or as a sole-trader (if ownership is claimed by a single person). It is the constitution (or founding documents) that ultimately defines the organisation and spells out the nature of such organisation.

It is important to note that the owners of a partnership and the owner of a sole-trader are personally liable for all debts.

Organisations that are of a profit making venture 

These include:
  • Sole-traders,
  • Partnerships, and
  • Companies that are of a profit making venture.

The above listed bodies are excluded from applying for the benefits that are listed below.

Organisations that are non profit organisations

These include:
  • Non profit companies,
  • Clubs, and
  • Associations.

All of the above qualify for all the benefits as listed below.

Benefits of a properly Constituted organisation

The benefits that accrue to sole-traders and partnerships are indeed limited. Not only are the owners liable to be taxed in their own hands for all sponsorships and winnings, and are liable in their own right, but none of the benefits which accrue to properly constituted organisations can be accessed by sole-traders and partnerships.

The benefits which may be accessed by properly constituted organisations are:
  • Local government funding,
  • Provincial Government funding
  • National government funding
  • Jack Cheetham Award (R500,000.00 for the winning programme)
  • Letsema Award (R500,000.00 for the winning programme)
  • Funding from the National Lottery Trust Fund
  • Participation in the S A Sports Awards
  • Participation in Regional Sports Councils
  • Participation in the Provincial Sports Councils
  • Participation in Mind Sports SouthAfrica
  • Limited liability for the members and office-bearers (depending on the Constitution)

Public Access to Information Act of 2000 (PAIA)

The Promotion of Access to Information Act was passed in 2000, its main aim is to allow members of the public to assert their right to information.

The Act requires that all public and private bodies register PAIA manuals. Certain levels of business may qualify for the further extension to 31 December 2015 while other still have to submit their manuals in terms of the legislation to the Commission.

These private bodies that have been granted the extension are those which operate in specific sectors, with 50 or more employees OR operate in specific sectors and have an annual turnover equal to or exceeding specific amounts.

According the SAHRC website, "while these private companies no longer have to submit manuals during the period of the new exemption they are not exempted from complying with the rest of the Act."

There are legal penalties that may be imposed for non-compliance.

List of National Organisations

Name of organisation
Type of organisation
South African Sports Confederation and Olympic Committee (SASCOC)
Non Profit Company
Mind Sports South Africa

List of other organisations

Name of organisation
Type of organisation
Knights Mind Sports Club
Pretoria Boys eSports Club
Roedean Mind Sports Club
St John's Mind Sports Club
University of Witwatersrand Wargames Club

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