Commonwealth Numbered Acts

FINANCIAL CORPORATIONS ACT 1974 No. 36 of 1974 - SECT 7

7. (1) Subject to sub-sections (2) and (3), the question whether corporations
are related to each other for the purposes of this Act shall be determined in
the same manner as the question whether corporations are related to each other
is determined under the Companies Ordinance 1962-1973 of the Australian
Capital Territory or, if that Ordinance is amended, under that Ordinance as
amended.

(2) A corporation shall not be taken for the purposes of this Act to be
related to another corporation (not being a corporation that carries on in
Australia a business, whether or not that business is its sole or principal
business, of selling goods by retail) unless the first-mentioned corporation
is a foreign corporation, a trading corporation formed within the limits of
Australia or a financial corporation so formed and-

   (a)  the sole or principal business activities in Australia of the
        first-mentioned corporation are the borrowing of money and the
        provision of finance; or

   (b)  the sum of the amounts of such of the assets in Australia of the
        first-mentioned corporation as consist of debts due to that
        corporation, being debts resulting from transactions entered into in
        the course of the provision of finance by that corporation, exceeds-

        (i)    50 per centum; or

        (ii)   if a greater or lesser percentage is prescribed by the
               regulations-the percentage so prescribed,

of the sum of the values of all the assets in Australia of that corporation.

(3) A corporation shall not be taken for the purposes of this Act to be
related to another corporation (being a corporation that carries on in
Australia a business, whether or not that business is its sole or principal
business, of selling goods by retail) unless the first-mentioned corporation-

   (a)  is a foreign corporation, a trading corporation formed within the
        limits of Australia or a financial corporation so formed; and

   (b)  engages in the provision of finance in the course of carrying on in
        Australia a business, whether or not that business is its sole or
        principal business, of selling goods by retail.