Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 31/46)
Character Range: 3129738–3132443

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 dividends and capital are taken not to control that power or have those rights: see section 166‑265.

Acquisition of top interposed entity by another entity
 (3) If:
 (a) a new entity (the new interposed entity) acquires all the *shares or other interests in the top interposed entity (the old interposed entity); and
 (b) the new interposed entity has the same classes of shares or other interests as the old interposed entity; and
 (c) if the new interposed entity is a company—the shares are not *redeemable shares; and
 (d) in any case—each stakeholder holds the same proportion, or a reasonably equivalent proportion, of the total *voting stakes, *dividend stakes or *capital stakes in the new interposed entity immediately after the acquisition as the stakeholder held in the old interposed entity immediately before the acquisition;
then, at all times that the old interposed entity held or is taken to have held a stake in the tested company, the new interposed entity is taken to have held that stake.
 (4) Except for the purposes of determining whether a time is an alteration time (within the meaning of section 165‑115L), section 166‑272 (which is about the same shares or interests) is to be disregarded when applying subsection (3).

Acquisition of tested company by new interposed entity
 (5) If:
 (a) a new entity (the new interposed entity) that is a company acquires all the *shares in the tested company; and
 (b) assuming that the time immediately before the acquisition had been an *ownership test time, section 166‑225 would have applied the tests to the tested company as if there were a single notional entity as described in subsection 166‑225(2) in respect of some or all of the *voting stakes, *dividend stakes or *capital stakes in the tested company; and
 (c) the new interposed entity has the same classes of shares as the tested company; and
 (d) the shares are not *redeemable shares; and
 (e) each entity that held a proportion of the voting stakes, dividend stakes or capital stakes in the tested company immediately before the acquisition (disregarding section 166‑225) holds the same proportion, or a reasonably equivalent proportion, of that kind of stake in the new interposed entity immediately after the acquisition;
then, at all times that the single notional entity mentioned in paragraph (b) held or is taken to have held a stake in the tested company, the new interposed entity is taken to have held that stake.
 (6) Except for the purposes