Related entities
94 Related entities
Two relevant entities are related entities if—
1 has a direct interest in the other; or
a series of such relationships can be traced between them through another or other related entities (intermediate entities).
If a relevant entity is related to another relevant entity by a relationship traced through an intermediate entity or intermediate entities, the relevant entity's proportionate interest in the other is calculated by multiplying the relevant fractions together and expressing the result as a percentage.
Example—
Entity
A (a listed company) holds a 75% proportionate interest in entity B (a private unit trust scheme) which in turn holds a 50% proportionate interest in entity C (a private company). In this case the proportionate interest of entity A in entity C (insofar as it is traced through entity B) is 37.5%.
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