Document ID: chunk:federal_register_of_legislation:C2025C00023:clause:1_8
Version: federal_register_of_legislation:C2025C00023
Segment Type: clause
Provision Reference: sch 1 cl 8
Character Range: 861292–862660

8  Tracing of ownership
  Company interests can be traced through a chain of companies using a method known as the fractional tracing method. This method applies a formula to decide what company interest a person has.
This method is best demonstrated by an example.
  Example:
  The person's company interest in Company B is worked out using the formula:

where:
Company Interest 1 is the company interest of the person, expressed as a fraction, in Company A.
Company Interest 2 is the company interest of Company A, expressed as a fraction, in Company B.
In this case, the formula produces: 3/10 X 1/10, which means that the person has a 3% company interest in Company B.
Interests traced in this way can be added. If Company B is a licensee and the person had, through other chains of companies, a further 12.5% company interest in Company B, the person would be regarded as being in a position to exercise control of Company B under Part 3 of this Schedule because the person would have company interests exceeding 15% in Company B.

Example:

  In this example, the person has a 15.5% company interest in Company B. This is made up of 3% (through Company A), 8% (through Company C) and 4.5% (through Company D).
This method of tracing ownership may be used through any number of companies. However, the ACMA is not required to trace every minor company interest.