8A  Meaning of influence or control
  • (1)

    An entity is in a position to directly or indirectly influence or control an asset if:

    • (a)

      the entity is in a position to exercise voting or veto rights in relation to the body that governs the asset; or

    • (b)

      the entity is in a position to make decisions that materially impact on the running of, or strategic direction in relation to, the asset; or

    • (c)

      the entity has the ability to appoint:

      • (i)

        persons to the body that governs the asset; or

      • (ii)

        key personnel involved in running the asset; or

    • (d)

      the entity is in a position to influence or determine decisions relating to:

      • (i)

        the business plan, or any other management plan, for the asset; or

      • (ii)

        major expenditure relating to the asset; or

      • (iii)

        major contracts or transactions involving the asset; or

      • (iv)

        major loans involving the asset.

    Note: For interests held by trusts, partnerships, superannuation funds and unincorporated foreign companies, see section 53A.

  • (2)

    An entity (the controlling entity) is in a position to directly or indirectly influence or control another entity (the controlled entity) if the controlling entity:

    • (a)

      is in a position to exercise voting or veto rights in relation to the controlled entity; or

    • (b)

      is in a position to make decisions that materially impact on the running of, or strategic direction of, the controlled entity; or

    • (c)

      has the ability to appoint persons to the board of the controlled entity; or

    • (d)

      is in a position to influence or determine decisions relating to:

      • (i)

        the business plan, or any other management plan, for the controlled entity; or

      • (ii)

        major expenditure relating to the controlled entity; or

      • (iii)

        major contracts or transactions involving the controlled entity; or

      • (iv)

        major loans involving the controlled entity; or

    • (e)

      together with any associates of the controlling entity, holds an interest of at least 10% in the controlled entity (including if any of the interests are held jointly with one or more other entities).

  • (3)

    This section does not limit when an entity is in a position to directly or indirectly influence or control an asset or other entity.