Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 23/66)
Character Range: 6384244–6386969

company (the test company) is a *tier‑1 company, if 2 or more other companies beneficially own all of the *membership interests in the test company, and each of those other companies:
 (a) is a *wholly‑owned subsidiary of the *top company; and
 (b) meets the conditions in columns 2 and 3 of item 2 of the table;
the test company is taken to be a wholly‑owned subsidiary of one of those other companies.

719‑25  Head company, subsidiary members and members of a MEC group
 (1) The head company of a *MEC group is worked out under section 719‑75.
 (2) The remaining members of the group are the subsidiary members of the group.
 (3) The members of a *MEC group are the *head company of the group and the *subsidiary members of the group.

719‑30  Treating entities as wholly‑owned subsidiaries by disregarding employee shares
 (1) The object of this section is to ensure that an entity is not prevented from being a *wholly‑owned subsidiary of another entity, just because there are minor holdings of *membership interests in an entity issued under *arrangements for employee shareholdings.
 (2) For the purposes of this Division, in determining whether an entity is a *wholly‑owned subsidiary of another entity, disregard:
 (a) particular *shares in a company if the shares are covered by subsection (3) and the total number of those shares is not more than 1% of the number of ordinary shares in the company; and
 (b) particular *membership interests in an entity if the membership interests are covered by subsection (5) and the total number of those membership interests is not more than 1% of the number of membership interests of that kind in the entity.
 (3) A *share or *membership interest in a company is covered by this subsection if:
 (a) the entity who holds the beneficial interest in the share or membership interest acquired that beneficial interest:
 (i) under an *employee share scheme; or
 (ii) by exercising a right, a beneficial interest in which was acquired under an employee share scheme; and
 (b) paragraphs 83A‑105(1)(a) and (b) and subsection 83A‑105(2) apply to the beneficial interest acquired under the scheme; and
 (c) in the case of a membership interest—the interest is part of a stapled security.

719‑35  Treating entities held through non‑fixed trusts as wholly‑owned subsidiaries
 (1) This section operates to ensure that an entity (the test entity) is not prevented from being a *wholly‑owned subsidiary of a company, just because there is a trust that is not a *fixed trust interposed between the test entity and the company.
 (2) For the purposes of this Division, in determining whether the test entity is a *wholly‑owned subsidiary of the company, assume that the interposed trust is