89HMaximisation of entitlements on distribution of land holdings

89H Maximisation of entitlements on distribution of land holdings (1) This section applies to any calculation, for the purposes of this Part, of the entitlement of a person (the ***interested person***) to participate in a distribution of the property of a landholder, whether on a winding up, a vesting of trust property or otherwise. (2) A calculation is to be made based, firstly, on a distribution carried out in accordance with the constitution of the landholder, and with any law relevant to the distribution, as in force at the time of distribution, and the entitlement of the interested person is to be evaluated accordingly. (3) Next, a calculation is to be made based on a distribution carried out after the interested person, and any other person whom the interested person has power to direct with respect to such a distribution or who is, in relation to the interested person, an associated person, has exercised all powers and discretions exercisable by them— (a) to effect or compel an alteration to the constitution of the landholder; and (b) to vary the rights conferred by units or shares in the landholder; and (c) to effect or compel the substitution or replacement of units or shares in the landholder with other units or shares in it— in such a manner as would maximise the value of the entitlement, and the entitlement of the interested person is to be evaluated accordingly. (4) The results obtained by an evaluation of the interested person's entitlement in accordance with subsections (2) and (3) are then to be compared, and whichever evaluation results in a greater entitlement is the correct evaluation, for the purposes of this Part, of the entitlement, unless the Commissioner, being satisfied that the application of this subsection in the particular case would be inequitable, determines otherwise. (5) A reference in this section to the constitution of a landholder is a reference, if the landholder is a unit trust scheme, to the trust deed or other document that contains the rules of the trust. S. 89I substituted by No. 38/2012 s. 5.