Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 20/35)
Character Range: 3259588–3262145

the company.
Note: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
 (4) If:
 (a) apart from this subsection, an interest that gives an entity and its *associates (if any):
 (i) the ability to exercise, or control the exercise of, any of the voting power in a company; or
 (ii) the right to receive dividends that a company may pay; or
 (iii) the right to receive a distribution of capital of a company;
  would, in the application of paragraph (3)(a), (b) or (c), be counted more than once; and
 (b) the interest is both direct and indirect;
only the direct interest is to be counted.

170‑265  Connected entity
 (1) An entity is a connected entity of the originating company at a particular time if, at that time:
 (a) the entity is a trustee of a trust and either:
 (i) if the trust is a *fixed trust—one or more companies that are members of the *linked group of which the originating company is a member, or one or more of those companies and their *associates, between them have the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any distribution to beneficiaries of the trust of income or corpus of the trust; or
 (ii) if the trust is not a fixed trust—any company that is a member of the linked group of which the originating company is a member or any associate of such a company benefits or is capable of benefiting under the trust; or
 (b) the entity is an individual who has a controlling stake in the company.
 (2) For the purposes of paragraph (1)(b), an individual has a controlling stake in a company at a particular time if the individual, or the individual and his or her *associates between them:
 (a) are able at that time to exercise, or control the exercise of, more than 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any dividends that the company may pay; or
 (c) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any distribution of capital of the company.
Note: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose