Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 16/59)
Character Range: 2572449–2575085

or the entity and the entity's *associates between them, had at that time the right to receive 30% or more of any distribution to beneficiaries of the trust of income or capital of the trust.
 (8) No original interest holder has a significant stake in a company that has at least 300 *members or a trust that has at least 300 beneficiaries if it is reasonable for the company or the trustee of the trust to conclude that this is the case on the information available to it.
Note: There are some cases where a company or trust will not be regarded as having 300 members or beneficiaries: see section 124‑810.

Common stake
 (9) If the original entity and the replacement entity are companies, an entity, or 2 or more entities, have a common stake in the original entity just before the *arrangement started and in the replacement entity just after the arrangement was completed if the entity or entities, and their *associates, between them:
 (a) had 80% or more of:
 (i) the voting rights in the original entity just before the arrangement started; and
 (ii) the voting rights in the replacement entity just after the arrangement was completed; or
 (b) had the right to receive 80% or more of:
 (i) any *dividends that the original entity may pay just before the arrangement started; and
 (ii) any dividends that the replacement entity may pay just after the arrangement was completed; or
 (c) had the right to receive 80% or more of:
 (i) any distribution of capital of the original entity just before the arrangement started; and
 (ii) any distribution of capital of the replacement entity just after the arrangement was completed.
 (10) If the original entity and the replacement entity are trusts, an entity, or 2 or more entities, have a common stake in the original entity just before the *arrangement started and in the replacement entity just after the arrangement was completed if the entity or entities, and their *associates, between them:
 (a) had, just before the arrangement started, the right to receive 80% or more of any distribution to beneficiaries of the original entity of income or capital of the original entity; and
 (b) had, just after the arrangement was completed, the right to receive 80% or more of any distribution to beneficiaries of the replacement entity of income or capital of that entity.

124‑783A  Rights that affect stakes
 (1) An entity has a significant stake in another entity if:
 (a) the first entity has one or more *stake options in the other entity; and
 (b) the first entity would have such a stake (under section 124‑783) if the first entity acquired *stake interests in the other entity