Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_34:p1
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 34 (pt 1/3)
Character Range: 94091–96661

34  At the end of Subdivision 166‑D
Add:

166‑170  Rules about substantial continuity of ownership of 100% subsidiary of listed public company

Application

 (1) This section has effect in applying this Subdivision to a *100% subsidiary (the subsidiary) of a *listed public company (the holding company) for the purpose of determining whether there was substantial continuity of ownership of the subsidiary as between the start of a *test period and another time in that period.

Exactly the same shares or interest must be continued to be held

 (2) There is no substantial continuity of ownership unless at all relevant times:
 (a) the only *shares in the subsidiary that are taken into account are exactly the same shares and are held by the same persons; and
 (b) the only interests in any entity (including shares in another company) interposed between the holding company and the subsidiary that are taken into account are exactly the same interests and are held by the same persons.

What happens in case of share splitting

 (3) If:
 (a) a particular *share (an old share) in a company of which the holding company, or an entity interposed between the subsidiary and the holding company, is the beneficial owner at the start of the *test period is divided into 2 or more new shares; and
 (b) the holding company or entity becomes the beneficial owner of each of the new shares immediately after the division takes place and remains the beneficial owner until the end of that period;
the new shares are taken to be exactly the same shares as the old share.

What happens in case of splitting of units in a unit trust

 (4) If:
 (a) a particular unit (an old unit) in a unit trust of which the holding company, or an entity interposed between the holding company and the subsidiary, is the holder at the start of the *test period is divided into 2 or more new units during that period; and
 (b) the holding company or entity becomes the holder of each of the new units immediately after the division takes place and remains the holder until the end of that period;
the new units are taken to be exactly the same units as the old unit.

What happens in case of consolidation of shares

 (5) If:
 (a) a particular *share (an old share) in a company of which the holding company, or an entity interposed between the subsidiary and the holding company, is the beneficial owner at the start of the *test period, and other shares (each of which is also called an old share) in the company of which the holding company or entity is the beneficial owner at the start