Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The object of this section is to ensure that, following an * ADI restructure to which Part 4A of the Financial Sector (Transfer and Restructure) Act 1999 applies, a body corporate is not prevented from being a * subsidiary member of a * consolidated group or * consolidatable group just because the body (or another body corporate) has issued, or issues, certain preference * shares.
(2) This Part (except Division 719) operates as if a body corporate that meets the requirement of subsection (3) at a particular time were a * wholly - owned subsidiary of another body corporate (the holding body ) at the time.
(3) The body corporate (the preference - share issuing body ) must be one that would be a * wholly - owned subsidiary of the holding body at the time if the * shares in the preference share - issuing body that are to be disregarded under subsection (4) did not exist.
(4) Disregard a * share in the preference - share issuing body if:
(a) a restructure instrument under Part 4A of the Financial Sector (Transfer and Restructure) Act 1999 is in force in relation to a non - operating holding company within the meaning of that Act; and
(b) because of the restructure to which the instrument relates, an * ADI becomes a subsidiary (within the meaning of that Act) of the non - operating holding company; and
(c) the preference share - issuing body is:
(i) the ADI; or
(ii) part of an extended licensed entity (within the meaning of the * prudential standards) that includes the ADI; and
(d) the shares are covered by subsection (5).
(5) A * share is covered by this subsection if:
(a) the share is a preference share; and
(b) any * return on the share is fixed at the time of issue by reference to the amount subscribed; and
(c) the share is not a * voting share; and
(d) either:
(i) the share is Tier 1 capital (within the meaning of the * prudential standards); or
(ii) the share would be Tier 1 capital (within the meaning of the prudential standards) were it not for a limit, imposed by those standards, on the proportion of Tier 1 capital that can be made up of such shares.
(6) Paragraph (5)(a) covers a preference share if it is issued:
(a) by itself; or
(b) in combination with one or more * schemes that are * related schemes in relation to a scheme under which a preference share is issued.
(7) If subsection (5) has covered a * share, but would (apart from this subsection) stop covering the share from a particular time, then for a period of 180 days after that time the subsection is taken to continue to cover the share.