Document ID: chunk:federal_register_of_legislation:C2025C00014:section:327a:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 327A (pt 1/3)
Character Range: 1873798–1876464

327A  Widely distributed finance shares

Meaning of widely distributed finance shares
 (1) For the purposes of this Part, a share in a company is a widely distributed finance share if both:
 (a) either:
 (i) the company is an eligible listed company; or
 (ii) the aggregate of the eligible share interests in the company held by an eligible listed company is 90% or more; and
 (b) the share is a recognised finance share.

Extended meaning of widely distributed finance shares—funding of transitional finance shares
 (1A) For the purposes of this Part, if:
 (a) apart from this subsection, shares (in this subsection called the test shares) in a company are not widely distributed finance shares; and
 (b) as a result of the operation of subsection 327B(3) in relation to the shares:
 (i) the shares are taken to be widely distributed finance shares for the purposes of section 327B; and
 (ii) shares in another company are transitional finance shares;
the test shares are taken to be, and to have been, widely distributed finance shares.

Meaning of eligible listed company
 (2) For the purposes of this section, a company is an eligible listed company at a particular time during a statutory accounting period of the company if:
 (a) shares in the company (other than shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) are listed for quotation in the official list of a stock exchange in Australia or elsewhere; and
 (b) none of the following subparagraphs apply:
 (i) at any time during the statutory accounting period, a single entity, or less than 21 entities, held, or were entitled to acquire, 75% or more of the paid‑up share capital of the company (other than capital represented by shares entitled to a fixed rate of dividend only);
 (ii) at any time during the statutory accounting period, a single entity, or less than 21 entities held, or were entitled to acquire, 75% or more of the total rights (other than rights arising in respect of shares entitled to a fixed rate of dividend only) of shareholders to vote, or participate in any decision‑making, concerning any of the following:
 (A) the making of distributions of capital or profits of the company to its shareholders;
 (B) the constituent document of the company;
 (C) any variation of the share capital of the company;
 (iii) 75% or more of the total amount of all of the dividends paid by the company (other than dividends paid in respect of shares entitled to a fixed rate of dividend only) during the statutory accounting period was paid to a single entity or to less than 21 entities;
 (iv) dividends (other than dividends paid in