Corporations Act 2001

CHAPTER 1 - INTRODUCTORY  

PART 1.2 - INTERPRETATION  

Division 6 - Subsidiaries and related bodies corporate  

SECTION 50AA   MEANING OF CONTROL  

50AA(1)    
For the purposes of this Act, an entity controls a second entity if the first entity has the capacity to determine the outcome of decisions about the second entity ' s financial and operating policies.

50AA(2)    
In determining whether the first entity has this capacity:

(a)    the practical influence the first entity can exert (rather than the rights it can enforce) is the issue to be considered; and

(b)    any practice or pattern of behaviour affecting the second 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).

50AA(3)    
The first entity does not control the second entity merely because the first entity and a third entity jointly have the capacity to determine the outcome of decisions about the second entity ' s financial and operating policies.

50AA(4)    
If the first entity:

(a)    has the capacity to influence decisions about the second entity ' s financial and operating policies; and

(b)    is under a legal obligation to exercise that capacity for the benefit of someone other than the first entity ' s members;

the first entity is taken not to control the second entity.