Part 2Determination that individual is not attributable stakeholder

Part 2 Determination that individual is not attributable stakeholder

5 Purpose

This Part sets out decision-making principles with which the Commission must comply in making a determination, under paragraph 52ZZJ(1)(a) or (2)(c) of the Act, that an individual is not an attributable stakeholder of a company or trust.

6 Application

1. This Part applies if, but for a determination by the Commission, the individual would be an attributable stakeholder of the company or trust.

2. The Commission must consider the relationship between the individual and the company or trust, having regard to:

3. the reason why, but for a determination, the individual would be an attributable stakeholder; and

4. the circumstances mentioned in this Part.

5. In particular, the Commission must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine that the individual is not an attributable stakeholder of the company or trust.

7 Circumstances affecting relationship with company or trust

1. The Commission must consider whether there are relevant circumstances that make it inappropriate for the individual to be an attributable stakeholder of the company or trust.

2. For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:

3. circumstances arising from the legal structure of the company or trust;

4. circumstances arising from the administrative arrangements of the company or trust;

5. whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust.

8 Contribution to company or trust

If the individual has made a contribution to the company or trust, the Commission must consider the circumstances in which the contribution was made and, in particular:

1. the value of the contribution; and
2. the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and
3. the effect of the contribution on the financial position of the company or trust; and
4. if the individual received consideration for the contribution, the amount of consideration.