Wednesday, September 30, 2020

Strata Schemes Management Regulation 2016

Part 10
Clause 62

Connected persons | Clause 62

(1)  For the purposes of section 7 (1) (f) of the Act, a person that is a corporation (the principal person) is connected with another person if the other person—

(a)  is a related body corporate or an associated entity (within the meaning of the Corporations Act 2001 of the Commonwealth) of the principal person, or

(b)  holds an executive position (within the meaning of section 7 of the Act) in a related body corporate or an associated entity of the principal person, or

(c)  holds or will hold any relevant financial interest in the principal person, or is or will be entitled to exercise any relevant power (whether in the person’s own right or on behalf of any other person) in the business of the principal person, and by virtue of that interest or power is or will be able to exercise a significant influence over or with respect to the management or operation of the principal person.

(2)  In this clause—

relevant financial interest, in relation to a principal person, means—

(a)  any shares in the capital of the principal person, or

(b)  any entitlement to receive any income derived from a business carried on by the principal person, or to receive any other financial benefit or financial advantage from the carrying on of the business, whether the entitlement arises at law or in equity or otherwise.

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a)  to participate in any directorial, managerial or executive position in the principal person, or

(b)  to elect or appoint any person to any such position.

© State of New South Wales Department of Customer Service. For current information go to www.nsw.gov.au.

Disclaimer: Reproduced from the Strata Schemes Management Act 2015 . This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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