Document ID: chunk:federal_register_of_legislation:F2024L01669:clause:1_4b
Version: federal_register_of_legislation:F2024L01669
Segment Type: clause
Provision Reference: sch 1 cl 4B
Character Range: 5759–7963

4B  Meaning of control transaction

Regulation 4 bodies
 (1) One or more Part 5.1 arrangements in relation to a regulation 4 body constitute a control transaction in relation to the regulation 4 body if the Part 5.1 arrangement or arrangements result in:
 (a) a person beginning to control the regulation 4 body; or
 (b) the voting power of a person in the regulation 4 body increasing:
 (i) from 50% or below to more than 50%; or
 (ii) from a starting point that is above 50%.
 (2) However, one or more Part 5.1 arrangements are not a control transaction if:
 (a) their sole object is to exchange securities in the regulation 4 body for securities in a body or managed investment scheme (the new body) in such a way that subregulation (3) applies; or
 (b) they are, or are part of, an internal restructure or reorganisation of a group of persons who are:
 (i) related bodies corporate; or
 (ii) related by means of trust or partnership.
 (3) This subregulation applies if, immediately after the exchange, the voting power in the new body of each person who was:
 (a) if the Part 5.1 arrangement, or any of the Part 5.1 arrangements, are with all of the members of the regulation 4 body—a member of the regulation 4 body immediately before the exchange; or
 (b) if the Part 5.1 arrangement, or all of the Part 5.1 arrangements, are with a class or classes of members of the regulation 4 body—a member of that class or any of those classes;
is the same as the voting power the member had in the regulation 4 body immediately before the exchange.

Listed registered schemes
 (4) An arrangement is a control transaction in relation to a listed registered scheme if the arrangement results in:
 (a) a person beginning to control the registered scheme; or
 (b) the voting power of a person in the registered scheme increasing:
 (i) from 50% or below to more than 50%; or
 (ii) from a starting point that is above 50%.
 (5) For the purposes of paragraph (4)(a) of this regulation, in working out whether a person begins to control the registered scheme, apply section 50AA of the Corporations Act with the modifications set out in paragraphs 604(1)(a) to (h) of that Act in relation to the registered scheme.