Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:5_4:p7
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 5 cl 4 (pt 7/8)
Character Range: 320657–323248

Mario has 20%, Peter has 10% and Dave has 10%.

 Sonja, Mario and Peter are associates. They each have a significant stake in YZT because, on an associate inclusive basis, they each have a 90% stake in YZT. Dave does not have a significant stake because his total stake, on an associate inclusive basis, is 10%.

 (7) An entity has a significant stake in a trust at a time if the entity, or the entity and the entity's *associates between them, had at that time the right to receive for their own benefit 30% or more of any distribution to beneficiaries of the trust of income or capital of the trust.

 (8) No original interest holder has a significant stake in a company that has at least 300 *members or a trust that has at least 300 beneficiaries if it is reasonable for the company or the trustee of the trust to conclude that this is the case on the information available to it.

Note: There are some cases where a company or trust will not be regarded as having 300 members or beneficiaries: see section 124‑810.

Common stake

 (9) If the original entity and the acquiring entity are companies, an entity, or 2 or more entities, have a common stake in the original entity just before the *arrangement started and in the acquiring entity just after the arrangement was completed if the entity or entities, and their *associates, between them:
 (a) had 80% or more of:
 (i) the voting rights in the original entity just before the arrangement started; and
 (ii) the voting rights in the replacement entity just after the arrangement was completed; or
 (b) had the right to receive for their own benefit 80% or more of:
 (i) any *dividends that the original entity may pay just before the arrangement started; and
 (ii) any dividends that the replacement entity may pay just after the arrangement was completed; or
 (c) had the right to receive for their own benefit 80% or more of:
 (i) any distribution of capital of the original entity just before the arrangement started; and
 (ii) any distribution of capital of the replacement entity just after the arrangement was completed.

 (10) If the original entity and the acquiring entity are trusts, an entity, or 2 or more entities, have a common stake in the original entity just before the *arrangement started and in the acquiring entity just after the arrangement was completed if the entity or entities, and their *associates, between them:
 (a) had, just before the arrangement started, the right to receive for their own benefit 80% or more of any distribution to beneficiaries of the original entity of income or capital of the