Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_4:p4
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 4/12)
Character Range: 63716–66337

be taken to be at the discretion of a company or a *connected entity of the company.

974‑95  The equity interest

 (1) If a *scheme gives rise to an *equity interest in a company because of an item of the table in subsection 974‑75(1), the equity interest consists of the interest referred to in that item.

 (2) If 2 or more *related schemes give rise to an *equity interest in a company because of an item of the table in subsection 974‑75(1), the equity interest consists of the combination of interests under the schemes that satisfy the requirements of that item.

 (3) Subsection 974‑80(2) also provides that certain interests are *equity interests in a company.

 (4) If the returns on a *non‑share equity interest in a company are payable to 2 or more entities:
 (a) each entity is taken to be the holder of a non‑share equity interest in the company; and
 (b) each entity's non‑share equity interest consists of the interests that:
 (i) constitute the non‑share equity interest; and
 (ii) are held by that entity.

 (5) The company in which an *equity interest exists is taken to be the issuer of the interest.

Subdivision 974‑D—Common provisions

Table of sections

974‑100 Treatment of convertible and converting interests
974‑105 Effect of action taken in relation to interest arising from related schemes
974‑110 Effect of material change

974‑100  Treatment of convertible and converting interests

 (1) If a *debt interest is an *interest that will or may convert into an *equity interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the debt interest).

 (2) If an *equity interest is an *interest that will or may convert into a *debt interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the equity interest).

974‑105  Effect of action taken in relation to interest arising from related schemes

 (1) If:
 (a) a *scheme, or schemes, give rise to a *debt interest in an entity or an *equity interest in a company; and
 (b) the entity or company pays a return, or undertakes any other transaction, in respect of any of the following (the component element):
 (i) the scheme; or
 (ii) a part of the scheme; or
 (iii) one of those schemes; or
 (iv) a part of one of those schemes;
then, for the purposes of the provisions that subsection (2) covers, the return is taken to be paid, or the transaction to have been undertaken, in respect of the debt interest or equity interest and not in respect of the component