11Undertaking activity on behalf of a foreign principal

#### 11 Undertaking activity on behalf of a foreign principal (1) A person undertakes an activity on behalf of a foreign principal if: (a) the person undertakes the activity in any of the following circumstances: (i) under an arrangement with the foreign principal; (ii) in the service of the foreign principal; (iii) on the order or at the request of the foreign principal; (iv) under the direction of the foreign principal; and (b) at the time the arrangement or service is entered into, or the order, request or direction made, both the person and the foreign principal knew or expected that: (i) the person would or might undertake the activity; and (ii) the person would or might do so in circumstances set out in section 20, 21, 22 or 23 (whether or not the parties expressly considered the existence of the scheme). (2) For the purposes of subsection (1), it does not matter whether consideration is payable. (3) An activity undertaken by a company registered under the Corporations Act 2001 is not undertaken on behalf of a foreign principal merely because the company is a subsidiary (within the meaning of the Corporations Act 2001) of a foreign principal.