Document ID: chunk:federal_register_of_legislation:C2010C00262:clause:1_1:p5
Version: federal_register_of_legislation:C2010C00262
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/5)
Character Range: 12100–14446

determine that an entity does not control another entity

 (6) If the control percentage referred to in subsection (2) or (4) is at least 40%, but less than 50%, the Commissioner may determine that the first entity does not control the other entity if the Commissioner thinks that the other entity is controlled by an entity other than, or by entities that do not include, the first entity or any of its *affiliates.

Indirect control of an entity

 (7) This section applies to an entity (the first entity) that directly controls another entity (the second entity) as if the first entity also controlled any other entity that is directly, or indirectly by any other application or applications of this section, controlled by the second entity.

 (8) However, subsection (7) does not apply if the second entity is an entity of any of the following kinds:
 (a) a company *shares in which (except shares that carry the right to a fixed rate of *dividend) are listed for quotation in the official list of an *approved stock exchange;
 (b) a *publicly traded unit trust;
 (c) a *mutual insurance company;
 (d) a *mutual affiliate company;
 (e) a company (other than one covered by paragraph (a)) all the shares in which are beneficially owned by one or more of the following:
 (i) a company covered by paragraph (a);
 (ii) a publicly traded unit trust;
 (iii) a mutual insurance company;
 (iv) a mutual affiliate company.

328‑130  Meaning of affiliate

 (1) An individual or a company is an affiliate of yours if the individual or company acts, or could reasonably be expected to act, in accordance with your directions or wishes, or in concert with you, in relation to the affairs of the *business of the individual or company.

 (2) However, an individual or a company is not your affiliate merely because of the nature of the business relationship you and the individual or company share.

Example: A partner in a partnership would not be an affiliate of another partner merely because the first partner acts, or could reasonably be expected to act, in accordance with the directions or wishes of the second partner, or in concert with the second partner, in relation to the affairs of the partnership.

 Directors of the same company and trustees of the same trust, or the company and a director of that company, would be in a similar position.