THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW 82
The Corporations Law is as follows:...

CHAPTER 1 - INTRODUCTORY

PART 1.2 - INTERPRETATION

Division 6 - Subsidiaries and related bodies corporate

SECTION 48 MATTERS TO BE DISREGARDED

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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.

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