Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p67
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 173412–176283

do so.  Being involved in the design of an investee is not sufficient to give an investor control (see paragraph B51 of the Standard).

Example IG2D

In this example, the facts of Example IG2C apply, except that:

    * TUV's constitution permits its board to make financial distributions to other parties as decided by the board; and

    * although the charity does not have any right to distributions of profits from TUV, to date TUV has always distributed its profits to the charity.

Based on these facts and circumstances, the charity does not control TUV because, as in Example IG2C, the charity does not have power over TUV to direct the relevant activities.

Even though TUV was established by the charity in order to further its objective regarding community first aid skills, and despite the charity historically receiving financial returns from TUV, the design of TUV does not give the charity power over TUV.  The board of TUV is independent of the charity, there is no requirement for TUV to make distributions to the charity (or to any other party), and the charity has no right to demand financial returns.

Implementation example

Example IG3

The LMN local government (the Council) is created under a State's Local Government Act to operate for the peace, order and good government of its municipal district.  The Council is administered by the councillors, who are elected directly by the local community in periodic elections.  General requirements for the elections are set out in the Act.

Objectives of the Council

The Act specifies that the Council's primary objective is to achieve the best outcomes for the local community over the long term.  In working to achieve this objective, the Council must have regard to:

    * promoting the social, economic and environmental viability and sustainability of the municipal district;

    * ensuring that resources are used efficiently and effectively and that services provided are accessible and equitable;

    * the equitable imposition of rates and charges; and

    * transparency and accountability in Council decision making.

Powers and Functions of the Council

The Council is empowered by the Act to do all things necessary and convenient for the achievement of its objectives and the performance of its functions, subject to any limitations under the Act or any other legislation (see the sections on the State Government's protective and substantive rights later in this example).

The Council's functions include:

    * raising revenue to fund its functions and activities;

    * planning for and providing services and facilities (including infrastructure) for the local community;

    * strategic and land-use planning;

    * making and enforcing local laws; and

    * advocating proposals that are in the best interests of the district.

Activities of the Council

In carrying