S 31 substituted by No 3 of 2011, s 3 and Sch 2 item 7, effective 3 March 2011. S 31 formerly read:
SECTION 31 LIMIT ON SHAREHOLDING IN A PDF
31(1)
Unless the Board otherwise approves, a person (not being an ADI, a life office or a widely-held complying superannuation fund), together with associates (not being ADIs, life offices or widely-held complying superannuation funds) of the person, must not hold more than 30% of the issued shares in a PDF.
History
S 31(1) amended by No 64 of 2000, s 3 and Sch 1 item 17 and 18, by substituting ``ADI, a life office or a widely-held complying superannuation fund)'' for ``ADI or a life office)'' and substituting ``ADIs, life offices or widely-held complying superannuation funds)'' for ``banks or life offices)'', applicable in relation to a PDF, from the beginning of the PDF's 1999-2000 income year (as defined in ITAA '97).
S 31(1) amended by No 48 of 1998, s 3 and Sch 1 item 130, by substituting ``an ADI or a'' for ``a bank or'', effective 1 July 1998.
S 31(1) amended by No 102 of 1994.
31(2)
In this section:
"associate"
, in relation to a person, means:
(a)
a parent or remoter lineal ancestor, a child or remoter issue, or a brother or sister, of the person (including a person who is such a relation by adoption); or
(b)
the spouse or a de facto spouse of the person; or
(c)
if the person is a company:
(i)
an officer of the company; or
(ii)
an officer of a company that is related to the first-mentioned company; or
(iii)
a person who holds a substantial ownership interest in the company; or
(d)
an officer of a company of which the person is an officer; or
(e)
a person who is, because of this subsection, an associate of any other person who is an associate of the person (including a person who is an associate of the person by another application or other applications of this paragraph).
31(2A)
However, in determining whether a person is an
associate
of another person, disregard any connection those persons have with or through a PDF.
Example:
This means that, despite paragraph (1)(d), the fact that 2 persons are both officers of the same PDF does not make the officers
associates
of one another (although they would still be associates if they were both officers of the same non-PDF company).
History
S 31(2A) inserted by No 64 of 2000, s 3 and Sch 1 item 19, applicable in relation to a PDF, from the beginning of the PDF's 1999-2000 income year (as defined in ITAA
'
97).
31(2B)
This section does not prevent a PDF from merging with another PDF as mentioned in section 32A.
History
S 31(2B) inserted by No 64 of 2000, s 3 and Sch 1 item 19, applicable in relation to a PDF, from the beginning of the PDF's 1999-2000 income year (as defined in ITAA
'
97).
31(3)
For the purposes of subparagraph (c)(ii) of the definition of ``associate'' in subsection (2), the question whether companies are related to each other is to be determined in the same manner as the question whether bodies corporate (within the meaning of the
Corporations Act 2001
) are related to each other is determined under the
Corporations Act 2001
.
History
S 31(3) amended by No 55 of 2001, s 3 and Sch 3 item 431, by substituting ``
Corporations Act 2001
'' for ``Corporations Law'' (wherever occurring), effective 15 July 2001.
31(4)
For the purposes of subparagraph (c)(iii) of the definition of ``associate'' in subsection (2), a person holds a substantial ownership interest in a company if the total of all amounts paid on the shares in the company in which the person holds interests equals or exceeds 15% of the total of all amounts paid on all shares in the company.
31(5)
For the purposes of subsection (4):
(a)
a person holds an interest in a share if the person has any legal or equitable interest in the share; and
(b)
without limiting the generality of paragraph (a), a person holds an interest in a share if the person, although not the registered holder of the share, is entitled to exercise, or control the exercise of, a right attached to the share, otherwise than because the person has been appointed as a proxy or representative to vote at a meeting of members of a company or of a class of its members.
[
CCH Note:
Act No 21 of 2003, s 3 and Sch 1 item 16 contained the following application provision, effective 11 April 2003:
16 Certain shareholdings in PDFs do not contravene section 31
(1)
Section
31
of the
Pooled Development Funds Act 1992
is taken to have applied in relation to a PDF during the period:
(a)
starting on 8 October 1999; and
(b)
ending on the commencement of this item;
as if paragraph
4A(1)(a)
of that Act were required to be ignored in determining whether a fund was a
widely-held complying superannuation fund
.
Note:
Paragraph
4A(1)(a)
would have required that the fund not be an excluded superannuation fund (within the meaning of the
Superannuation Industry (Supervision) Act 1993
).
(2)
If:
(a)
because of the effect of subitem (1), a person's holding of shares in a PDF immediately before the commencement of this item did not contravene section
31
of the
Pooled Development Funds Act 1992
as then in force; but
(b)
that holding of those shares would, but for this subitem, result in a contravention of section
31
of that Act as it applies after the commencement of this item;
then the following provisions have effect:
(c)
subject to paragraph (e), the person's continued holding of those shares in the PDF after that commencement is to be disregarded when applying section
31
of that Act as then in force to the person and the person's associates;
(d)
if, after that commencement, any bonus shares in the PDF are issued to the person because the person is the holder of the shares referred to in paragraph (c), then, subject to paragraph (e), the person's holding of those bonus shares is to be disregarded when applying section
31
of that Act as then in force to the person and the person's associates;
(e)
however, if, after that commencement, the person, or any of the person's associates, acquires additional shares in the PDF (otherwise than as mentioned in paragraph (d)), the shares to which paragraphs (c) and (d) apply are to be taken into account in determining whether the acquisition of those additional shares complies with section
31
of that Act as then in force.
]
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