Document ID: chunk:federal_register_of_legislation:C2024C00549:section:12:p1
Version: federal_register_of_legislation:C2024C00549
Segment Type: section
Provision Reference: s 12 (pt 1/2)
Character Range: 129615–132176

12  Direct control interests in a company
 (1) A person holds a direct control interest in a company at a particular time equal to the percentage of the total paid‑up share capital of the company in which the person holds an interest at that time.
 (2) A person also holds a direct control interest in a company at a particular time equal to the percentage of the voting power in the company that the person is in a position to control at that time.
 (3) A person also holds a direct control interest in a company at a particular time equal to the percentage that the person holds, or is entitled to acquire, at that time of the total rights to distributions of capital or profits of the company to its shareholders on winding‑up.
 (4) A person also holds a direct control interest in a company at a particular time equal to the percentage that the person holds, or is entitled to acquire, at that time of the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding‑up.
 (4A) In determining the direct control interest of a particular type that a person holds in a Telstra successor company, it is to be assumed that the only shares in the Telstra successor company are the shares held by persons other than the Commonwealth.
 (4AA) For the purposes of subclause (4A), if a share in a Telstra successor company is an investment of the Future Fund, the share is taken to be held by a person other than the Commonwealth.
 (4AB) For the purposes of subclause (4A), if:
 (a) a share in a Telstra successor company is held by the Commonwealth; and
 (b) the share is specified in a written declaration made by the Minister for Finance under this paragraph;
the share is taken to be held by a person other than the Commonwealth.
          Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.
 (4B) For the purposes of subclauses (4A), (4AA) and (4AB), share does not include an interest in a share.
 (5) Subject to subclause (6), if:
 (a) a person holds a particular type of direct control interest (including a direct control interest that is taken to be held because of one or more previous applications of this subclause) in a company (the first level company); and
 (b) the first level company holds the same type of direct control interest in another company (the second level company);
the person is taken to hold that type of direct control interest in the second level company equal to the percentage worked out using the formula:

where:
first level percentage means the