Control and other definitions for schedule

48 Meaning of control in this schedule

(1)

In this schedule, a person controls an entity if the person—

(a)

is the entity’s holding company (within the meaning of section 5 of the Companies Act 1993); or

(b)

has the capacity to determine the outcome of decisions about the entity’s financial and operating policies.

(2)

In determining whether the person has the capacity referred to in subclause (1)(b),—

(a)

the practical influence the person can exert (rather than the rights the person can enforce) is the issue to be considered; and

(b)

any practice or pattern of behaviour affecting the entity’s financial or operating policies must be taken into account (even if it involves a breach of an agreement or a breach of trust).

(3)

The person does not control the entity by virtue of subclause (1)(b) merely because the person and another person jointly have the capacity to determine the outcome of decisions about the entity’s financial and operating policies.

Compare: Corporations Act 2001 s 50AA (Aust)