Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if a consolidated group mentioned in section 701 - 1 of this Act is a MEC group.
(2) Paragraphs 701 - 1(2)(b) and (3)(b) of this Act have effect as if a reference in those paragraphs to the future head company were a reference to any entity that became a member of the group as an eligible tier - 1 company at the time the MEC group came into existence.
(3) An entity is a transitional entity for the purposes of paragraph 701 - 1(3)(b) of this Act if:
(a) the entity and one or more other entities were members of a potential MEC group as eligible tier - 1 companies, throughout the period:
(i) beginning just before 1 July 2003; and
(ii) ending just before a time (the rolldown time ) before the MEC group came into existence; and
Note: The other entity (or one of the other entities) could be the future head company.
(b) the entity satisfied either of these conditions at the rolldown time:
(i) the entity was a wholly - owned subsidiary of any of those other entities;
(ii) the entity would be covered by subparagraph (i), if it were assumed that all of the membership interests that were beneficially owned by any of those other entities at that time were owned by a single one of those other entities; and
(c) the entity continued to satisfy either of the conditions mentioned in paragraph (b) at all times throughout the period:
(i) beginning just after the rolldown time; and
(ii) ending when the MEC group came into existence; and
(d) the other entities remained members of the potential MEC group as eligible tier - 1 companies, throughout the period:
(i) beginning just before 1 July 2003; and
(ii) ending when the MEC group came into existence; and
(e) the other entities were members of the MEC group when it came into existence, as eligible tier - 1 companies.