4Meaning of associate

#### 4 Meaning of associate (1A) This regulation is made for the purposes of subsection 15A(2) of the Act. (1) This regulation has effect for the purposes of interpreting a reference (the associate reference), in relation to a person (the primary person), to an associate. (2) A person is not an associate of the primary person except as provided in this regulation. (3) Nothing in this regulation limits the generality of anything else in it. (4) If the primary person is a body corporate, the associate reference includes a reference to: (a) a director or secretary of the body; and (b) a related body corporate; and (c) a director or secretary of a related body corporate. (5) An associate reference includes a reference to: (a) a person in partnership with whom the primary person engages in a credit activity; and (b) subject to subregulation (8), a person who is a partner of the primary person otherwise than because of the engaging in a credit activity in partnership with the primary person; and (c) a trustee of a trust in relation to which the primary person benefits, or is capable of benefiting; and (d) a director of a body corporate of which the primary person is also a director and that engages in a credit activity; and (e) subject to subregulation (8), a director of a body corporate of which the primary person is also a director and that does not engage in a credit activity; and (f) a person in concert with whom the primary person is acting, or proposes to act, in respect of the matter to which the associate reference relates; and (g) a person with whom the primary person is, or proposes to become, associated, whether formally or informally, in any other way, in respect of the matter to which the associate reference relates. (6) If the primary person has entered, or proposes to enter, into a transaction, or has done, or proposes to do, any act or thing, in order to become associated with another person as mentioned in an applicable provision of this regulation, the associate reference includes a reference to that other person. (7) A person is not an associate of another person by virtue of subregulation (5), or by virtue of subregulation (6) as it applies in relation to subregulation (5), merely because one or both of the following occurs: (a) one gives advice to the other, or acts on the other’s behalf, in the proper performance of the functions attaching to a professional capacity or a business relationship; (b) one, as a client, gives specific instructions to the other, whose ordinary business includes engaging in credit activities, to enter into a credit contract on the client’s behalf in the ordinary course of that business. (8) For the purposes of proceedings in relation to a matter mentioned in these Regulations in which it is alleged that a person (person 1) was an associate of another person by virtue of paragraph (5)(b) or (e), person 1 is not taken to have been an associate of the other person in relation to a matter by virtue of that paragraph unless it is proved that person 1 knew, or ought to have known, at that time, the material particulars of that matter. (9) A reference to an associate, in relation to an entity (other than a body corporate) that: (a) engages in a credit activity; and (b) is constituted by 2 or more persons; includes a reference to an associate of any of those persons.