175PPrimary groups arising from tracing of interests in corporations

175P Primary groups arising from tracing of interests in corporations

175P Primary groups arising from tracing of interests in corporations

(1) An entity and a corporation form part of a primary group if the entity has a controlling interest in the corporation.

(2) For the purposes of this section, an entity has a controlling interest in a corporation if the corporation has share capital and—

(a) the entity has a direct interest in the corporation and the value of that direct interest exceeds 50%, or

(b) the entity has an indirect interest in the corporation and the value of that indirect interest exceeds 50%, or

(c) the entity has an aggregate interest in the corporation and the value of the aggregate interest exceeds 50%.

(3) Schedule 2 has effect.

Note.

Schedule 2 sets out the manner for determining whether an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of such an interest.

(4) In this section—

associated person has the meaning given by the Duties Act 1997.

entity means—

(a) a person, or

(b) a group of associated persons.

s 175P: Ins 2007 No 21, Sch 4.5 [5].