Document ID: chunk:federal_register_of_legislation:C2015A00150:clause:1_19
Version: federal_register_of_legislation:C2015A00150
Segment Type: clause
Provision Reference: sch 1 cl 19
Character Range: 41775–43743

19  Tracing of substantial interests in corporations and trusts
 (1) This section applies (subject to subsection (3)) if:
 (a) either:
 (i) a person holds a substantial interest in a corporation or trust (the higher entity); or
 (ii) 2 or more persons hold an aggregate substantial interest in a corporation (the higher entity); or
 (iii) 2 or more persons hold an aggregate substantial interest in a trust (the trustee of which is a higher entity);
  including because of one or more applications of this section; and
 (b) the higher entity:
 (i) is in a position to control all or any of the voting power or potential voting power in a corporation (the lower entity); or
 (ii) holds interests in all or any of the shares in a corporation (the lower entity); or
 (iii) holds an interest in a trust (the lower entity).
 (2) For the purposes of this Act:
 (a) if subparagraph (1)(b)(i) applies—the person or persons are taken to be in a position to control the voting power or potential voting power of the lower entity that the higher entity is in a position to control; or
 (b) if subparagraph (1)(b)(ii) applies—the person or persons are taken to hold the interests in the shares in the lower entity that the higher entity holds; or
 (c) if subparagraph (1)(b)(iii) applies—the person or persons are taken to hold the interest in the lower entity that the higher entity holds.
 (3) This section does not apply for the purpose of:
 (a) determining under any of the following whether a foreign person acquires a direct interest in an Australian entity or Australian business that is an agribusiness:
 (i) paragraph 40(2)(a) (meaning of significant action—entities);
 (ii) paragraph 41(2)(a) (meaning of significant action—businesses);
 (iii) paragraph 47(2)(a) (meaning of notifiable action—general); or
 (b) determining under paragraph 47(2)(b) (meaning of notifiable action—general) whether a foreign person acquires a substantial interest in an Australian entity.