Commonwealth Consolidated Acts Commonwealth Consolidated ActsA MEC group and a potential MEC group each consist of certain Australian - resident entities that are wholly - owned subsidiaries of a foreign top company.
A company that is a first - tier subsidiary of the top company is a tier - 1 company.
A MEC group cannot be formed unless there are at least 2 tier - 1 companies of the top company that are eligible to be members of the group.
A MEC group becomes consolidated at a time chosen by the eligible tier - 1 companies.
One of the eligible tier - 1 companies becomes the head company of the group.
The remaining members of the group are the subsidiary members.
Table of sections
Basic concepts
719 - 5 What is a MEC group ?
719 - 10 What is a potential MEC group?
719 - 15 What is an eligible tier - 1 company ?
719 - 20 What is a top company and a tier - 1 company ?
719 - 25 Head company, subsidiary members and members of a MEC group
719 - 30 Treating entities as wholly - owned subsidiaries by disregarding employee shares
719 - 35 Treating entities held through non - fixed trusts as wholly - owned subsidiaries
719 - 40 Special conversion event--potential MEC group
719 - 45 Application of sections 703 - 20 and 703 - 25
Choice to consolidate a potential MEC group
719 - 50 Eligible tier - 1 companies may choose to consolidate a potential MEC group
719 - 55 When choice starts to have effect
719 - 60 Appointment of provisional head company
719 - 65 Qualifications for the provisional head company of a MEC group
719 - 70 Income year of new provisional head company to be the same as that of former provisional head company
719 - 75 Head company
Notice of events affecting group
719 - 76 Notice of choice to consolidate
719 - 77 Notice in relation to new eligible tier - 1 members etc.
719 - 78 Notice of special conversion event
719 - 79 Notice of appointment of provisional head company after formation of group
719 - 80 Notice of events affecting MEC group
Effects of change of head company
719 - 85 Application
719 - 90 New head company treated as substituted for old head company at all times before the transition time
719 - 95 No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group