Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p26
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 26/46)
Character Range: 3117371–3120002

Table of sections

The ownership tests: substantial continuity of ownership
166‑145 The ownership tests: substantial continuity of ownership
166‑165 Relationship with rules in Division 165

Corporate change in a company
166‑175 Corporate change in a company

The ownership tests: substantial continuity of ownership

166‑145  The ownership tests: substantial continuity of ownership
 (1) There is substantial continuity of ownership of the company as between the start of the *test period and another time in the test period if (and only if) the conditions in this section are met.
Note: Section 166‑165, and Subdivision 166‑E, affect how this section is applied.

Voting power
 (2) There must be persons (none of them companies or trustees) who had *more than 50% of the voting power in the company at the start of the *test period. Also, those persons must have had *more than 50% of the voting power in the company immediately after the other time in the test period.
Note 1: To work out who had more than 50% of the voting power, see section 165‑150.
Note 2: Subdivision 167‑B has special rules for working out voting power in a company whose shares do not all carry the same voting rights, or do not carry all of the voting rights in the company.

Rights to dividends
 (3) There must be persons (none of them companies) who had rights to *more than 50% of the company's dividends at the start of the *test period. Also, those persons must have had rights to *more than 50% of the company's dividends immediately after the other time in the test period.
Note 1: To work out who had rights to more than 50% of the company's dividends, see section 165‑155.
Note 2: Subdivision 167‑A has special rules for working out rights to dividends in a company whose shares do not all carry the same rights to dividends.

Rights to capital distributions
 (4) There must be persons (none of them companies) who had rights to *more than 50% of the company's capital distributions at the start of the *test period. Also, those persons must have had rights to *more than 50% of the company's capital distributions immediately after the other time in the test period.
Note 1: To work out who had rights to more than 50% of the company's capital distributions, see section 165‑160.
Note 2: Subdivision 167‑A has special rules for working out rights to capital distributions in a company whose shares do not all carry the same rights to capital distributions.

When to apply the test
 (5) To work out whether a condition in this section was satisfied at a time (the ownership test time), apply the alterative test for that condition.
Note: For the