Foreign Acquisitions and Takeovers Act 1975

PART 2 - ACTIONS TO WHICH THIS ACT APPLIES  

Division 4 - The threshold test and change in control  

Subdivision C - Change in control  

SECTION 54   CHANGE IN CONTROL  

54(1)    
For the purposes of determining whether an action is a significant action, there is a change in control of an entity or business if, and only if, the Treasurer is satisfied that the action would have, or has had, any of the results mentioned in subsection (2) or (3).

Foreign persons begin to control entity or business

54(2)    
One or more foreign persons would begin, or have begun, to control the entity or business (whether alone or together with any associates of any of those persons).

Change in foreign persons who control the entity or business

54(3)    
If one or more foreign persons already control or controlled the entity or business:.

(a) another foreign person would become, or has become, a person who controls the entity or business; or

(b) a person would cease, or has ceased, to be a person who controls the entity or business.

Meaning of control

54(4)    
A person controls an entity or business if:

(a) the person (whether alone or together with one or more associates) is in a position to determine the policy of the entity or business in relation to any matter; or

(b)    

without limiting paragraph (a), in relation to the acquisition of interests in securities in an entity or an issue of securities in an entity - the person holds a substantial interest in the entity.

Note: For determining the policy of a business of exploiting a mining or production tenement, see section 24 .

54(5)    
However, a person mentioned in paragraph (4)(b) does not control the entity if the Treasurer is satisfied that, having regard to all the circumstances, the person together with any one or more associates of that person is not in a position to determine the policy of the entity.

54(6)    
Subsection (5) does not require the Treasurer to determine whether a person is in a position to determine the policy of an entity.

References to foreign persons

54(7)    
If the Treasurer is satisfied that one or more foreign persons together with any one or more associates control an entity under subsection (4), then, in relation to an action taken relating to the entity, a reference to a foreign person is taken, for the purposes of Part 3 (powers of Treasurer), to include a reference to those associates (even if those associates are not foreign persons).