Corporations Act 2001
CCH note - modifying legislative instruments: The application of Ch 6D is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Employee Incentive Schemes - Ongoing Relief) Instrument 2025/169; and the ASIC Corporations (Offers of CHESS Depository Interests) Instrument 2025/180.
For legislative instruments or class orders before 1 January 2022 that affect the application of Ch 6D, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
View history note
Hide history noteA company is an eligible CSF company at a particular time (the test time ) if all of the following conditions are satisfied in relation to the company at the test time:
(a) the company is a public company limited by shares, or the company is a proprietary company that:
(i) has at least 2 directors; and
(ii) meets all the other requirements (if any) prescribed by the regulations for the purposes of this subparagraph;
(b) the company ' s principal place of business is in Australia;
(c) a majority of the company ' s directors (not counting alternate directors) ordinarily reside in Australia;
(d) the company complies with the assets and turnover test (see subsection (2));
(e) neither the company, nor any related party of the company, is:
(i) a listed corporation; or
(ii) included in an official list of a financial market operated outside this jurisdiction;
(f) neither the company, nor any related party of the company, has a substantial purpose of investing in securities or interests in other entities or schemes.
The assets and turnover test
738H(2)
The company complies with the assets and turnover test at the test time if:
(a) the value of the consolidated gross assets of the company, and of all its related parties is less than:
(i) $25 million; or
(ii) if the regulations prescribe a different amount - the prescribed amount; and
(b) the consolidated annual revenue of the company, and of all its related parties, is less than:
(i) $25 million; or
(ii) if the regulations prescribe a different amount - the prescribed amount.
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