Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 17 - INTERPRETING THIS ACT  

PART 17-1 - MEANING OF SOME IMPORTANT CONCEPTS  

Division 689 - Subsidiaries and control  

SECTION 689-25   CONTROL  

689-25(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.

689-25(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).

689-25(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.

689-25(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.

689-25(5)    
If the first entity is a common law holder of native title and the second entity is a registered native title body corporate, the first entity does not control the second entity merely because the second entity complies with a Native Title legislation obligation.