Corporations Act 2001
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.
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