12What is a subsidiary arrangement?

12  What is a subsidiary arrangement?

 (1) An arrangement is a subsidiary arrangement of a foreign arrangement if:

 (a) the arrangement is entered under the auspices of the foreign arrangement; and

 (b) the arrangement is not a foreign arrangement.

 (2) An arrangement is entered under the auspices of a foreign arrangement if the arrangement is entered at the same time, or after, the foreign arrangement is entered, and:

 (a) the arrangement is entered for the purposes of implementing the foreign arrangement, in any way and to any extent, whether directly or indirectly, and whether or not:

 (i) the arrangement refers to the foreign arrangement; or

 (ii) the foreign arrangement contemplates the arrangement, or arrangements of the same kind as the arrangement, being entered; or

 (b) both of the following are satisfied:

 (i) the foreign arrangement contemplates the arrangement, or arrangements of the same kind as the arrangement, being entered (including, for example, by encouraging or promoting the arrangement, or arrangements of that kind, to be entered);

 (ii) the arrangement is entered as a consequence of the foreign arrangement, or of any actions taken under the foreign arrangement; or

 (c) the arrangement and the foreign arrangement have a relationship of a kind prescribed by the rules.

Paragraphs (a), (b) and (c) do not limit each other.

 (3) For the purposes of subsection (1), it does not matter whether the parties were aware, when entering the subsidiary arrangement, that the foreign arrangement:

 (a) was entered in contravention of a provision of this Act; or

 (b) was, because of the operation of a provision of this Act, invalid, unenforceable, not in operation, terminated, required to be terminated, or affected in any other way.