THE CORPORATIONS LAW

CHAPTER 1 - INTRODUCTORY

PART 1.2 - INTERPRETATION

Division 6 - Subsidiaries and related bodies corporate

SECTION 48   MATTERS TO BE DISREGARDED  

48(1)  [Subsidiary]  

This section applies for the purposes of determining whether a body corporate (in this section called the ``first body'') is a subsidiary of another body corporate.

48(2)  [Fiduciary capacity]  

Any shares held, or power exercisable, by the other body in a fiduciary capacity shall be treated as not held or exercisable by it.

48(3)  [Nominee]  

Subject to subsections (4) and (5), any shares held, or power exercisable:

(a)  by a person as a nominee for the other body (except where the other body is concerned only in a fiduciary capacity); or

(b)  by, or by a nominee for, a subsidiary of the other body (not being a subsidiary that is concerned only in a fiduciary capacity);

shall be treated as held or exercisable by the other body.

48(4)  [Debentures]  

Any shares held, or power exercisable, by a person by virtue of the provisions of debentures of the first body, or of a trust deed for securing an issue of such debentures, shall be disregarded.

48(5)  [Money lending]  

Any shares held, or power exercisable, otherwise than as mentioned in subsection (4), by, or by a nominee for, the other body or a subsidiary of it shall be treated as not held or exercisable by the other body if:

(a)  the ordinary business of the other body or that subsidiary, as the case may be, includes lending money; and

(b)  the shares are held, or the power is exercisable, only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with lending money, not being a transaction entered into with an associate of the other body, or of that subsidiary, as the case may be.