62Connected persons

62 Connected persons

62 Connected persons

(1) For the purposes of section 7(1)(f) of the Act, a person that is a corporation (the principal person) is connected with another person if the other person—

(a) is a related body corporate or an associated entity (within the meaning of the Corporations Act 2001 of the Commonwealth) of the principal person, or

(b) holds an executive position (within the meaning of section 7 of the Act) in a related body corporate or an associated entity of the principal person, or

(c) holds or will hold any relevant financial interest in the principal person, or is or will be entitled to exercise any relevant power (whether in the person’s own right or on behalf of any other person) in the business of the principal person, and by virtue of that interest or power is or will be able to exercise a significant influence over or with respect to the management or operation of the principal person.

(1A) For the Act, section 7(1)(f), a person (the principal person) is connected with another person if the other person is—

(a) the trustee of a trust of which the principal person is a beneficiary, or

(b) one or more of the following in relation to a trust of which the principal person is, or has at any time been, a trustee—

(i) a beneficiary,

(ii) a child, spouse or de facto partner of a beneficiary.

(2) In this clause—

relevant financial interest, in relation to a principal person, means—

(a) any shares in the capital of the principal person, or

(b) any entitlement to receive any income derived from a business carried on by the principal person, or to receive any other financial benefit or financial advantage from the carrying on of the business, whether the entitlement arises at law or in equity or otherwise.

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a) to participate in any directorial, managerial or executive position in the principal person, or

(b) to elect or appoint any person to any such position.