14Double holding companies

14 Double holding companies

(1) This section applies if: (a) a foreign person has a stake in a company (holding company 2); and (b) holding company 2 has 100% of all types of direct control interests in another company (holding company 1); and (c) holding company 1 has 100% of all types of direct control interests in an airport‑operator company; and (d) holding company 1 and holding company 2 are both incorporated in Australia, and both have a share capital; and (e) holding company 2 is operated solely for the purpose of holding direct control interests in holding company 1 and at least one airport‑operator company; and (f) holding company 1 is operated solely for the purpose of holding direct control interests in one or more airport‑operator companies. Prescribed interest (2) An interest in a share that results in the foreign person having a stake in holding company 2: (a) is an interest of a prescribed kind only for the purpose of determining whether: (i) holding company 1, holding company 2 or the airport‑operator company mentioned in paragraph (1)(c) is a foreign person; or (ii) any of those companies is an associate of a foreign person; and (b) is to be disregarded only after it has been counted for the purposes of subclause 12(5) of the Schedule to the Act to calculate the stake that the foreign person holds in the airport‑operator company. Prescribed person (3) The foreign person mentioned in paragraph (1)(a) is a prescribed person.