Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A listed investment company is a company:
(a) that is an Australian resident; and
(b) * shares in which are listed for quotation on the official list of ASX Limited or an * approved stock exchange; and
(c) at least 90% of the * market value of whose * CGT assets consists of investments permitted by subsection (4).
(2) A company is also a listed investment company if:
(a) it is a 100% subsidiary of a company that is a * listed investment company because of subsection (1); and
(b) the subsidiary would be a listed investment company because of subsection (1) if it were able to comply with paragraph (1)(b).
(3) This Subdivision applies to a company that does not comply with paragraph (1)(c) as if it did comply if the failure:
(a) was of a temporary nature only; and
(b) was caused by circumstances outside its control.
(4) The permitted investments are:
(a) * shares, units, options, rights or similar interests to the extent permitted by subsections (5), (6), (7) and (8); or
(b) financial instruments (such as loans, debts, debentures, bonds, promissory notes, futures contracts, forward contracts, currency swap contracts and a right or option in respect of a share, security, loan or contract); or
(c) an asset whose main use by the company in the course of carrying on its * business is to * derive interest, an annuity, rent, royalties or foreign exchange gains unless:
(i) the asset is an intangible asset and has been substantially developed, altered or improved by the company so that its * market value has been substantially enhanced; or
(ii) its main use for deriving rent was only temporary; or
(d) goodwill.
(5) The company can own a * 100% subsidiary if the subsidiary is a listed investment company because of subsection (2).
(6) The company can own (directly or indirectly) any percentage of another * listed investment company that is not the company's * 100% subsidiary.
(7) Otherwise, the company cannot own (directly or indirectly) more than 10% of another company or trust.
(8) In working out whether a company indirectly owns any part of another company or trust:
(a) disregard any ownership it has indirectly through a * listed public company or a * publicly traded unit trust; and
(b) if the company owns not more than 50% of another * listed investment company--disregard any ownership it has indirectly through the other company.