Groups arising from tracing of interests in corporations
73 Groups arising from tracing of interests in corporations
An entity and a corporation form part of a group if the entity has a controlling interest in the corporation.
Section 79 (Exclusion of people from groups) allows the commissioner to exclude people from a group in certain circumstances.
For this section, an entity has a controlling interest in a corporation if the corporation has share capital and—
the entity has a direct interest in the corporation and the value of the direct interest exceeds 50%; or
the entity has an indirect interest in the corporation and the value of the indirect interest exceeds 50%; or
the entity has an aggregate interest in the corporation and the value of the aggregate interest exceeds 50%.
Division 5.3 (Business groups—tracing of interests in corporations) applies to this section.
Division 5.3 sets out the way of working out if an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of the interest.
This Act’s bill:Explanatory statementSecond reading speech
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