Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 33/46)
Character Range: 3134588–3137202

capital stake in a company if:
 (a) one or more other entities are interposed between the company and the stakeholder; and
 (b) the stakeholder has the right to receive, for its own benefit and *indirectly through the interposed entity or entities, all or any of a distribution of capital of the company.
Note: For working out the size of a capital stake (for example, for paragraph 166‑225(1)(c)), Subdivision 167‑A has special rules for a company whose shares do not all carry the same rights to capital distributions.

Stakes held by nominees
 (7) For the purposes of sections 166‑225 and 166‑230, if:
 (a) an entity (the nominee entity) holds a *voting stake, a *dividend stake, or a *capital stake, in a company; and
 (b) the nominee entity is itself a company; and
 (c) the nominee entity holds the stake as a nominee for more than one other entity;
then, for each entity for whom a part of the stake is held by the nominee entity, that entity's part of the stake may be treated instead as a separate stake.

Stakes held directly and/or indirectly by widely held companies

166‑240  Stakes held directly and/or indirectly by widely held companies
 (1) This section modifies how the ownership tests in section 166‑145 are applied to the tested company if a *widely held company directly or indirectly (through one or more interposed entities), or both directly and indirectly, holds any of the following:
 (a) a *voting stake that carries rights to between 10% and 50% (inclusive) of the voting power in the company;
 (b) a *dividend stake that carries the right to receive between 10% and 50% (inclusive) of any dividends that the company may pay;
 (c) a *capital stake that carries the right to receive between 10% and 50% (inclusive) of any distribution of capital of the company.
Note 1: Other rules might affect this provision: see subsections (3) and (4) and sections 166‑272, 166‑275 and 166‑280.
Note 2: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
 (2) The tests are applied to the tested company as if, at the *ownership test time:
 (a) if the stake is a *voting stake—the *widely held company controls, or is able to control, the voting power in the tested company that is carried by that stake at that time; and
 (b) if the stake is a *dividend stake—the widely held company had the right to receive (whether directly or *indirectly), for its own benefit, any *dividends the tested company may pay in respect of that stake at that time; and
 (c) if the stake