Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 17/66)
Character Range: 6367683–6370525

719‑15 What is an eligible tier‑1 company?
719‑20 What is a top company and a tier‑1 company?
719‑25 Head company, subsidiary members and members of a MEC group
719‑30 Treating entities as wholly‑owned subsidiaries by disregarding employee shares
719‑35 Treating entities held through non‑fixed trusts as wholly‑owned subsidiaries
719‑40 Special conversion event—potential MEC group
719‑45 Application of sections 703‑20 and 703‑25

Choice to consolidate a potential MEC group
719‑50 Eligible tier‑1 companies may choose to consolidate a potential MEC group
719‑55 When choice starts to have effect

Provisional head company
719‑60 Appointment of provisional head company
719‑65 Qualifications for the provisional head company of a MEC group
719‑70 Income year of new provisional head company to be the same as that of former provisional head company

Head company
719‑75 Head company

Notice of events affecting group
719‑76 Notice of choice to consolidate
719‑77 Notice in relation to new eligible tier‑1 members etc.
719‑78 Notice of special conversion event
719‑79 Notice of appointment of provisional head company after formation of group
719‑80 Notice of events affecting MEC group

Effects of change of head company
719‑85 Application
719‑90 New head company treated as substituted for old head company at all times before the transition time
719‑95 No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group

Basic concepts

719‑5  What is a MEC group?

When MEC group comes into existence
 (1) A MEC (multiple entry consolidated) group comes into existence when:
 (a) a choice, by 2 or more *eligible tier‑1 companies of a *top company, that the *potential MEC group derived from those companies be consolidated starts to have effect under section 719‑55; or
 (b) a *special conversion event happens to a potential MEC group derived from an eligible tier‑1 company of a top company.

Original members of a MEC group that results from a choice
 (2) A MEC group that results from a choice by 2 or more companies under section 719‑50 consists of the potential MEC group derived from time to time from whichever one or more of those companies continue to be eligible tier‑1 companies of the top company. This subsection has effect subject to subsection (4) (which deals with new eligible tier‑1 members).

Original members of a MEC group that results from a special conversion event
 (3) A MEC group that results from a special conversion event consists of the potential MEC group derived from time to time from whichever one or more of the following companies continue to be eligible tier‑1 companies of the top company:
 (a) the company mentioned in paragraph 719‑40(1)(b);
 (b) the companies specified in the notice under paragraph 719‑40(1)(e).
This subsection has effect subject