47Meaning of foreign person—disregarding small holdings of securities in primary listed entities

#### 47 Meaning of foreign person—disregarding small holdings of securities in primary listed entities (1) Paragraphs (c) and (e) of the definition of foreign person in section 4 of the Act do not apply in relation to an interest in securities in an entity if: (a) the entity is listed for quotation in the official list of a stock exchange in Australia; and (b) that listing is the entity’s primary listing in an official list of a stock exchange; and (c) the interest, together with any interests held by any associates of the person, is not a substantial holding (within the meaning of the Corporations Act 2001). > Note 1: Paragraphs (c) and (e) of the definition of foreign person cover corporations and trustees of trusts in which foreign persons hold aggregate substantial interests. > Note 2: The interests that are taken into account in working out whether a person has a substantial holding may be modified by ASIC under the Corporations Act 2001 (see for example section 601QA of that Act). (2) However, an interest mentioned in subsection (1) is to be taken into account for the purposes of working out the percentage of that or any other interest in the entity. > Note: The effect of this section is that an interest of, for example, 2% held by a foreign person is to be disregarded for the purposes of determining whether 2 or more foreign persons hold an aggregate substantial interest in an entity. However, the interest is to be taken into account in working out the percentage of any interest in the entity.