Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Companies that are linked to one another are a linked group .
(2) Two companies are linked to each other if:
(a) one of them has a controlling stake in the other; or
(b) the same entity has a controlling stake in each of them.
(3) For the purposes of this section, an entity has a controlling stake in a company at a particular time if the entity, or the entity and the entity's * associates between them:
(a) are able at that time to exercise, or control the exercise of, more than 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
(b) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any dividends that the company may pay; or
(c) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any distribution of capital of the company.
Note: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
(4) If:
(a) apart from this subsection, an interest that gives an entity and its * associates (if any):
(i) the ability to exercise, or control the exercise of, any of the voting power in a company; or
(ii) the right to receive dividends that a company may pay; or
(iii) the right to receive a distribution of capital of a company;
would, in the application of paragraph (3)(a), (b) or (c), be counted more than once; and
(b) the interest is both direct and indirect;
only the direct interest is to be counted.