Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:1_79:p11
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 1 cl 79 (pt 11/25)
Character Range: 59330–62003

in foreign listed companies

Other rules relating to voting power and rights

166‑265 Persons who actually control voting power or have rights are taken not to control power or have rights
166‑270 Single notional entity stakeholders taken to have minimum voting control, dividend rights and capital rights
166‑272 Same shares or interests to be held

When the rules in this Subdivision do not apply

166‑275 Rules in this Subdivision intended to be concessional
166‑280 Controlled test companies

Application of this Subdivision

166‑220  Application of this Subdivision

  This Subdivision applies to a company (the tested company) that is:
 (a) a *widely held company at all times during the income year; or
 (b) an *eligible Division 166 company at all times during the income year; or
 (c) a widely held company for a part of the income year and an eligible Division 166 company for the rest of the income year.

Note: See section 165‑255 for the rule about incomplete income years.

Stakes of less than 10% in the tested company

166‑225  Direct stakes of less than 10% in the tested company

 (1) This section modifies how the ownership tests in section 166‑145 are applied to the tested company if:
 (a) a *voting stake that carries rights to less than 10% of the voting power in the company is held directly in the company; or
 (b) a *dividend stake that carries the right to receive less than 10% of any dividends that the company may pay is held directly in the company; or
 (c) a *capital stake that carries the right to receive less than 10% of any distribution of capital of the company is held directly in the company.

Note: Other rules might affect this provision: see sections 166‑270, 166‑275 and 166‑280.

Notional shareholder

 (2) The tests are applied to the tested company as if, at the *ownership test time, a single notional entity:
 (a) directly controlled the voting power that is carried by each such *voting stake; and
 (b) had the right to receive, for its own benefit and directly:
 (i) any *dividends the tested company may pay in respect of each such *dividend stake; and
 (ii) any distributions of capital of the tested company in respect of each such *capital stake; and
 (c) were a person (other than a company).

Note: The persons who actually control the voting power and have rights to dividends and capital are taken not to control that power or have those rights: see section 166‑265.

 (3) To avoid doubt, the single notional entity mentioned in subsection (2) is a different single notional entity from the one mentioned in section 165‑207 and the one mentioned in section 166‑255.

166‑230  Indirect stakes of less than 10%