Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 30/46)
Character Range: 3127341–3129958

in subsection (2) is a different single notional entity from the one mentioned in section 165‑207 and the one mentioned in section 166‑255.

166‑230  Indirect stakes of less than 10% in the tested company
 (1) This section modifies how the ownership tests in section 166‑145 are applied to the tested company if it is the case, or it is reasonable to assume that:
 (a) an entity (the stakeholder) indirectly holds any of these stakes in the tested company:
 (i) a *voting stake that carries rights to less than 10% of the voting power in the company; or
 (ii) a *dividend stake that carries the right to receive less than 10% of any dividends that the company may pay; or
 (iii) a *capital stake that carries the right to receive less than 10% of any distribution of capital of the company; and
 (b) either:
 (i) the stakeholder indirectly holds the stake in the tested company by holding *shares directly in a company (the top interposed entity) that is interposed between the stakeholder and the tested company; or
 (ii) the stakeholder indirectly holds the stake in the tested company by holding another interest directly in an entity (the top interposed entity) that is not a company and that is interposed between the stakeholder and the tested company.
Note 1: There might also be other entities interposed between the top interposed entity and the tested company.
Note 2: Other rules might affect this provision: see subsection (3) and sections 166‑272, 166‑275 and 166‑280.
Note 3: For paragraph (a), Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.

Top interposed entity deemed to hold stakes directly in the tested company
 (2) The tests are applied to the tested company as if, at the *ownership test time:
 (a) if the stake is a *voting stake—the top interposed entity controls, or is able to control, the voting power in the tested company that is carried by that stake at that time; and
 (b) if the stake is a *dividend stake—the top interposed entity *indirectly had the right to receive, for its own benefit, any *dividends the tested company may pay in respect of that stake at that time; and
 (c) if the stake is a *capital stake—the top interposed entity indirectly had the right to receive, for its own benefit, any distributions of capital of the tested company in respect of that stake at that time; and
 (d) in any case—the top interposed entity were a person (other than a company).
Note: The persons who actually control the voting power and have rights to