Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p46
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 46/59)
Character Range: 2646666–2649244

equalisation ratio applying between the 2 companies, both generally and in the event of a winding up of one or both of the companies; and
 (e) cross‑guarantees as to, or similar financial support for, each other's substantial obligations or operations, except where the effect of the relevant regulatory requirements prevents those guarantees or that financial support.
 (5) However, an arrangement is not a dual listed company arrangement unless one but not both of the companies is an Australian resident.

125‑65  Meanings of demerger group, head entity and demerger subsidiary
 (1) A demerger group comprises the *head entity of the group and one or more *demerger subsidiaries.
Note: An entity may be a member of one or more demerger groups.
 (2) A trust cannot be a member of a demerger group unless *CGT event E4 is capable of applying to all of the units and interests in the trust.
Note: A discretionary trust cannot be a member of a demerger group.
 (2A) Neither a corporation sole nor a *complying superannuation entity is a member of a *demerger group.
 (3) A company or trust is the head entity of a *demerger group if no other member of the group owns *ownership interests in the company or trust.
 (4) If apart from this subsection, a company or trust would be the *head entity of a *demerger group and the company or trust, and all of its *demerger subsidiaries, are also demerger subsidiaries of another company or trust in another demerger group, the first‑mentioned company or trust is not the head entity of a demerger group.
 (5) A company or trust (the first company or trust) that would, apart from this subsection, be a member of a demerger group is not a member of the demerger group if:
 (a) the first company or trust owns, either alone or together with another company or trust that would, apart from this subsection, be a member of the *demerger group, more than 20% but less than 80% of the *ownership interests in a *listed public company or *listed widely held trust; and
 (b) the listed public company or listed widely held trust chooses that the first company or trust not be a member of the demerger group.
 (6) A company is a demerger subsidiary of another company or a trust that is a member of a *demerger group if the other company or the trust, either alone or together with other members of the group, owns, or has the right to *acquire, *ownership interests in the company that carry between them:
 (a) the right to receive more than 20% of any distribution of income or capital by the company; or
 (b) the right to exercise, or control