Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 15/59)
Character Range: 2569995–2572673

(3) must not be more than its *market value just after the *arrangement was completed.

124‑783  Meaning of significant stakeholder, common stakeholder, significant stake and common stake

Significant stakeholder
 (1) An original interest holder is a significant stakeholder for an *arrangement if it had:
 (a) a *significant stake in the original entity just before the arrangement started; and
 (b) a significant stake in the replacement entity just after the arrangement was completed.
 (2) Also, if an original interest holder is an acquiring entity, any other original interest holder is a significant stakeholder for an *arrangement if it:
 (a) had a *significant stake in the original entity just before the *arrangement started; and
 (b) is an *associate of the replacement entity just after the arrangement was completed.

Common stakeholder
 (3) An original interest holder is a common stakeholder for an *arrangement if it had:
 (a) a *common stake in the original entity just before the arrangement started; and
 (b) a common stake in the replacement entity just after the arrangement was completed.
 (4) If an acquiring entity for an *arrangement is an original interest holder, each other original interest holder that has a replacement interest is a common stakeholder for the arrangement.
 (5) No original interest holder is a common stakeholder for an *arrangement if either the original entity or the replacement entity had at least 300 *members (for a company) or 300 beneficiaries (for a trust) just before the arrangement started.

Significant stake
 (6) An entity has a significant stake in a company at a time if the entity, or the entity and the entity's *associates between them:
 (a) have at that time *shares carrying 30% or more of the voting rights in the company; or
 (b) have at that time the right to receive 30% or more of any *dividends that the company may pay; or
 (c) have at that time the right to receive 30% or more of any distribution of capital of the company.
Example: There are 4 shareholders in YZT Company: Sonja has 60%, 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 30% or more of any distribution to beneficiaries of the trust of income or capital of the trust.
 (8) No original interest holder