Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p10
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 10/26)
Character Range: 198546–201376

becomes consolidated at a time chosen by the eligible tier‑1 companies.
       One of the eligible tier‑1 companies becomes the head company of the group.
       The remaining members of the group are the subsidiary members.

Table of sections

Basic concepts

719‑5 What is a MEC group?
719‑10 What is a potential MEC group?
719‑15 What is an eligible tier‑1 company?
719‑20 What is a top company and a tier‑1 company?
719‑25 Head company and subsidiary members of a MEC group
719‑30 Treating entities as wholly‑owned subsidiaries by disregarding employee shares
719‑35 Treating entities held through non‑fixed trusts as wholly‑owned subsidiaries
719‑40 Special conversion event—potential MEC group
719‑45 Application of sections 703‑20 and 703‑25

Choice to consolidate a potential MEC group

719‑50 Eligible tier‑1 companies may choose to consolidate a potential MEC group
719‑55 When choice starts to have effect

Provisional head company

719‑60 Appointment of provisional head company
719‑65 Qualifications for the provisional head company of a MEC group
719‑70 Income year of new provisional head company to be the same as that of former provisional head company

Head company

719‑75 Head company

Notice of events affecting group

719‑80 Notice of events affecting MEC group

[This is the end of the Guide.]

Basic concepts

719‑5  What is a MEC group?

When MEC group comes into existence

 (1) A MEC (multiple entry consolidated) group comes into existence when:
 (a) a choice, by 2 or more *eligible tier‑1 companies of a *top company, that the *potential MEC group derived from those companies be consolidated starts to have effect under section 719‑55; or
 (b) a *special conversion event happens to a potential MEC group derived from an eligible tier‑1 company of a top company.

Original members of a MEC group that results from a choice

 (2) A MEC group that results from a choice by 2 or more companies under section 719‑50 consists of the potential MEC group derived from time to time from whichever one or more of those companies continue to be eligible tier‑1 companies of the top company. This subsection has effect subject to subsection (4) (which deals with new eligible tier‑1 members).

Original members of a MEC group that results from a special conversion event

 (3) A MEC group that results from a special conversion event consists of the potential MEC group derived from time to time from whichever one or more of the following companies continue to be eligible tier‑1 companies of the top company:
 (a) the company mentioned in paragraph 719‑40(1)(b);
 (b) the companies specified in the notice under paragraph 719‑40(1)(e).
This subsection has effect subject to subsection (4) (which deals with new eligible tier‑1 members).

New eligible tier‑1 members of a MEC group

 (4) If:
 (a) a