Commonwealth Consolidated Acts Commonwealth Consolidated ActsA company is taken to have met the conditions in section 165 - 12, paragraph 165 - 35(a) or section 165 - 123, or a changeover time or an alteration time is taken not to have occurred in respect of a company, (as the case requires), if:
(a) a * tracing rule modifies how the ownership tests in section 166 - 145 apply to the tested company in respect of a * voting stake, a * dividend stake or a * capital stake; and
(b) the company fails the tests (whether at the time of applying the tracing rule or at another time); and
(c) the company believes, on reasonable grounds, that if the tracing rule did not modify how the tests apply to the company in respect of that stake, it would not fail the tests.
Example: 11 people own shareholdings of 9% in the listed company. Under section 166 - 225, one notional shareholder is deemed to hold all of those shareholdings. 2 of the people sell their shareholdings so that 9 of the original 11 people now own shareholdings of 11%. Without the rule in this section, the company would fail the ownership tests (as the rule in section 166 - 225 no longer applies).