Document ID: chunk:federal_register_of_legislation:C2010C00622:clause:3_2
Version: federal_register_of_legislation:C2010C00622
Segment Type: clause
Provision Reference: sch 3 cl 2
Character Range: 21034–22666

2  Subsections 160APHH(6) and (7)
Repeal the subsections, substitute:

Shares held by a bare trustee for a sole beneficiary

 (6) If:
 (a) a person (the trustee) holds shares in trust for another person (the beneficiary); and
 (b) the beneficiary:
 (i) is the sole beneficiary of the trust; and
 (ii) is absolutely entitled under the trust to the shares;
the following provisions have effect:
 (c) this Division applies as if:
 (i) the shares were held by the beneficiary and not by the trustee; and
 (ii) the acts of the trustee in relation to the shares were acts of the beneficiary;
 (d) if the shares were acquired by the trustee as a result of a disposal by the beneficiary, that acquisition and disposal are to be disregarded;
 (e) if the shares are subsequently acquired by the beneficiary as a result of a disposal by the trustee, that acquisition and disposal are to be disregarded.

What happens if paragraph (6)(b) ceases to apply to beneficiary

 (7) If paragraph (6)(b) ceases to apply to the beneficiary, then, after the time when it so ceases to apply (the relevant time):
 (a) if the trust has become a widely held trust:
 (i) the shares are taken to have been disposed of by the beneficiary to the trustee at the relevant time; and
 (ii) the beneficiary is taken to have acquired the beneficiary's interest in the shares immediately after the disposal; or
 (b) in any other case—this Division applies to the beneficiary and the trustee as if subsection (6) had never applied;
and the respective positions of the beneficiary and the trustee in relation to the shares or interest are to be determined accordingly.