Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The object of this section is to ensure that an entity is not prevented from being a * wholly - owned subsidiary of another entity, just because there are minor holdings of * membership interests in an entity issued under * arrangements for employee shareholdings.
(2) For the purposes of this Division, in determining whether an entity is a * wholly - owned subsidiary of another entity, disregard:
(a) particular * shares in a company if the shares are covered by subsection (3) and the total number of those shares is not more than 1% of the number of ordinary shares in the company; and
(b) particular * membership interests in an entity if the membership interests are covered by subsection (5) and the total number of those membership interests is not more than 1% of the number of membership interests of that kind in the entity.
(3) A * share or * membership interest in a company is covered by this subsection if:
(a) the entity who holds the beneficial interest in the share or membership interest acquired that beneficial interest:
(i) under an * employee share scheme; or
(ii) by exercising a right, a beneficial interest in which was acquired under an employee share scheme; and
(b) paragraphs 83A - 105(1)(a) and (b) and subsection 83A - 105(2) apply to the beneficial interest acquired under the scheme; and
(c) in the case of a membership interest--the interest is part of a stapled security.