Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) One entity (the subsidiary entity ) is a wholly‑owned subsidiary of another entity (the holding entity ) if all the * membership interests in the subsidiary entity are beneficially owned by:
(a) the holding entity; or
(b) one or more wholly‑owned subsidiaries of the holding entity; or
(c) the holding entity and one or more wholly‑owned subsidiaries of the holding entity.
(2) An entity (other than the subsidiary entity) is a wholly‑owned subsidiary of the holding entity if, and only if:
(a) it is a wholly‑owned subsidiary of the holding entity; or
(b) it is a wholly‑owned subsidiary of a wholly‑owned subsidiary of the holding entity;
because of any other application or applications of this section.
Note: This Part also operates in some cases as if an entity were a wholly‑owned subsidiary of another entity, even though the entity is not covered by the definition in this section because of:
(a) ownership of shares under certain arrangements for employee shareholding (see section 703‑35); or
(b) interposed trusts that are not fixed trusts (see section 703‑40).