Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 27/66)
Character Range: 6393859–6396532

the members of the MEC group that resulted from the event are taken to have appointed the company mentioned in paragraph 719‑40(1)(b) as the provisional head company of the *MEC group. The appointment is taken to have come into force when the event happened.

Appointment after formation of group
 (3) If a *cessation event happens to the *provisional head company of a *MEC group, the *eligible tier‑1 companies that are or were members of the MEC group immediately after the cessation event may make a choice in writing, jointly appointing one of those companies to be the provisional head company of the group. The appointment is taken to have come into force immediately after the cessation event.

Qualifications for provisional head company
 (4) An appointment of a company under subsection (1) or (3) as the *provisional head company of a *MEC group has no effect unless, at the time the appointment comes into force, the company is qualified to be the *provisional head company of the MEC group under section 719‑65.

Appointment remains in force until cessation event
 (5) The appointment of a company as the *provisional head company of a *MEC group remains in force until a *cessation event happens to the company.

What is a cessation event?
 (6) A cessation event happens to a *provisional head company of a *MEC group if:
 (a) the company ceases to be qualified to be the *provisional head company of the group under section 719‑65; or
 (b) the company ceases to exist.

719‑65  Qualifications for the provisional head company of a MEC group

Qualifications for the provisional head company
 (1) A company is qualified to be the *provisional head company of a *MEC group if:
 (a) the company is an *eligible tier‑1 company of the *top company; and
 (b) no *membership interests in the company are beneficially owned by another member of the group.
 (2) Subsection (1) has effect subject to subsection (3).

Period during which new provisional head company must have been a member of the group
 (3) If:
 (a) a company (the new company) is to be appointed as the *provisional head company of a *MEC group under subsection 719‑60(3); and
 (b) the appointment will come into force immediately after a *cessation event happens to the former provisional head company of the group; and
 (c) a company (the original company) (which may be the former provisional head company) was appointed as the provisional head company of the group under subsection 719‑60(1) or (2);
the new company is not qualified to be the provisional head company of the group unless the new company has been a member of the group at all times during the period:
 (d) beginning at whichever of