Document ID: chunk:federal_register_of_legislation:C2025C00014:section:327a:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 327A (pt 2/3)
Character Range: 1876232–1878924

(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 respect of shares entitled to a fixed rate of dividend only) were not paid by the company during the statutory accounting period but it would be concluded that, if such dividends had been paid by the company during the statutory accounting period, 75% or more of those dividends would have been paid to a single entity or to less than 21 entities.

Meaning of recognised finance shares
 (3) For the purposes of this section, shares in a company are recognised finance shares if all the following conditions are satisfied:
 (a) the shareholder is not an associate of the company;
 (b) having regard to:
 (i) the manner in which the amount of dividends in respect of the shares are to be calculated; and
 (ii) the conditions applicable to the payment of dividends in respect of the shares; and
 (iii) any other relevant matters;
  the payment of the dividends in respect of the shares may reasonably be regarded as equivalent to the payment of interest on a loan;
 (c) having regard to:
 (i) the arrangements under which the shares were offered for subscription; and
 (ii) the ordinary business practices of brokers, agents, underwriters or other persons who took part in the arrangements for the issue of the shares; and
 (iii) the arrangements that were made for dealing with applications that were made for subscription of the shares; and
 (iv) any circumstances indicating the existence, at the time of the issue of the shares, of any arrangement for any of the shares to be offered for subscription, or purchased after subscription, by entities connected:
 (A) with each other; or
 (B) with the company issuing the shares; or
 (C) with a person by whom the amounts raised by the subscription, or amounts derived directly or indirectly from those amounts, were intended to be used;
  it is reasonable to regard the shares as having been issued with a view to public subscription or purchase or other wide distribution among investors.

Meaning of eligible share interest
 (4) For the purposes of this section, a person holds an eligible share interest in a company at a particular time equal to the percentage of the company's total paid‑up share capital (excluding recognised finance shares) beneficially owned by the person at that time.

Extended meaning of eligible share interest: tiers of companies
 (5) For the purposes of this section, if:
 (a) a person holds an eligible share interest (including an eligible share interest that is taken to be held