Document ID: chunk:federal_register_of_legislation:C2025C00014:section:326:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 326 (pt 1/2)
Character Range: 1870146–1872673

326  AFI subsidiary
 (1) For the purposes of this Part, a company is an AFI subsidiary (or an Australian financial institution subsidiary) at a particular time if either of the following paragraphs applies:
 (a) at that time, there is a group of 5 or fewer AFI entities the aggregate of whose direct control interests and indirect control interests in the company is not less than 50%;
 (b) both of the following subparagraphs apply:
 (i) at that time, there is a single AFI entity (in this paragraph called the assumed controller) the aggregate of whose direct control interests and indirect control interests in the company is not less than 40%;
 (ii) at that time, the company is not controlled by a group of entities not being or including the assumed controller or any of its associates.
 (2) A reference in this section to an AFI entity is a reference to:
 (a) a company that is an AFI; or
 (b) a 100% subsidiary of such a company.
 (3) For the purposes of this section, a company (in this subsection called the subsidiary company) is taken to be the 100% subsidiary of another company (in this subsection called the holding company) at a particular time if:
 (a) at that time, all the shares in the subsidiary company were beneficially owned by:
 (i) the holding company; or
 (ii) a company that is, or 2 or more companies each of which is, a 100% subsidiary of the holding company; or
 (iii) the holding company and a company that is, or 2 or more companies each of which is, a 100% subsidiary of the holding company; and
 (b) there was no agreement, arrangement or understanding in force at that time by virtue of which any person was in a position, or would be in a position after that time, to affect rights of the holding company or of a 100% subsidiary of the holding company in relation to the subsidiary company.
 (4) For the purposes of this section, where a company is a 100% subsidiary of another company (including a company that is such a 100% subsidiary by virtue of another application or other applications of this subsection), every company that is a 100% subsidiary of the first‑mentioned company is taken to be a 100% subsidiary of that other company.
 (5) For the purposes of subsection (3), a person is taken to be in a position at a particular time to affect any rights of a company in relation to another company if, at that time, that person has a right, power or option (whether by virtue of any provision of the constituent document of either of those companies or by virtue of any agreement or