Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) either:
(i) the securities in an entity can only be transferred together with securities in one or more other entities; or
(ii) an entity has entered an agreement with one or more other entities resulting in the entities being under a legal obligation to operate on a unified basis; and
(b) a person takes an action in relation to one of the entities (the target ) mentioned in paragraph (a); and
(c) the target is not:
(i) an Australian entity; or
(ii) an entity carrying on an Australian business; or
(iii) an entity carrying on a national security business; or
(iv) the holding entity of an entity mentioned in subparagraph (ii) or (iii);
as is required for the action to be a significant action, notifiable action, notifiable national security action or reviewable national security action; and
(d) there is at least one other entity mentioned in paragraph (a) that is an entity of a kind mentioned in subparagraph (c)(i), (ii), (iii) or (iv).
Note: Entities in a dual listed company arrangement are examples of entities that are under a legal obligation to operate on a unified basis.
(2) For the purposes of this Act, the target is taken to be the same kind of entity as the entity mentioned in paragraph (d).
Example: A foreign person acquires interests in securities in the target (see paragraph 40(2)(b)). The target's securities are stapled to securities in another entity. The other entity is a relevant entity that carries on an Australian business (see subparagraph 40(4)(a)(i)). The target is taken to be a relevant entity that carries on an Australian business.