CORPORATIONS ACT 2001

CHAPTER 1 - INTRODUCTORY  

PART 1.2 - INTERPRETATION  

Division 6 - Subsidiaries and related bodies corporate  

SECTION 50AAA   ASSOCIATED ENTITIES  

50AAA(1)   [ General rule]  

One entity (the associate ) is an associated entity of another entity (the principal ) if subsection (2), (3), (4), (5), (6) or (7) is satisfied.

50AAA(2)   [ Related bodies corporate]  

This subsection is satisfied if the associate and the principal are related bodies corporate.

50AAA(3)   [ Principal controls associate]  

This subsection is satisfied if the principal controls the associate.

50AAA(4)   [ Associate controls principal]  

This subsection is satisfied if:


(a) the associate controls the principal; and


(b) the operations, resources or affairs of the principal are material to the associate.

50AAA(5)   [ Qualifying investment - associate]  

This subsection is satisfied if:


(a) the associate has a qualifying investment (see subsection (8)) in the principal; and


(b) the associate has significant influence over the principal; and


(c) the interest is material to the associate.

50AAA(6)   [ Qualifying investment - principal]  

This subsection is satisfied if:


(a) the principal has a qualifying investment (see subsection (8)) in the associate; and


(b) the principal has significant influence over the associate; and


(c) the interest is material to the principal.

50AAA(7)   [ Control of both principal and associate]  

This subsection is satisfied if:


(a) an entity (the third entity ) controls both the principal and the associate; and


(b) the operations, resources or affairs of the principal and the associate are both material to the third entity.

50AAA(8)   [ " qualifying investment " ]  

For the purposes of this section, one entity (the first entity ) has a qualifying investment in another entity (the second entity ) if the first entity:


(a) has an asset that is an investment in the second entity; or


(b) has an asset that is the beneficial interest in an investment in the second entity and has control over that asset.


 

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