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CORPORATIONS ACT 2001 - SECT 259E
When a company controls an entity
(1) For the purposes of this Part, a company controls an entity if the company
has the capacity to determine the outcome of decisions about the entity's
financial and operating policies.
(2) In determining whether a company has this capacity:
- the practical
influence the company can exert (rather than the rights it can enforce) is the
issue to be addressed; and
- any practice or pattern of behaviour affecting the entity's financial or
operating policies is to be taken into account (even if it involves a breach
of an agreement or a breach of trust).
(3) Merely because the company and an unrelated entity jointly have the
capacity to determine the outcome of decisions about another entity's
financial and operating policies, the company does not control the other
(4) A company is not taken to control an entity merely because of a capacity
that it is under a legal obligation to exercise for the benefit of someone
other than its shareholders.
- Note: This situation could arise, for example,
if the company holds shares as a trustee or is performing duties as a
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