New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 3AA

3AA Meaning of “close associate” of applicant for, or holder of, licence

(1) For the purposes of this Act, a person is a "close associate" of an applicant for, or holder of, a contractor licence or building consultancy licence or of an applicant for the renewal or restoration of such a licence if the person:

(a) is a partner of the applicant or holder, or

(b) is an employee or agent of the applicant or holder, or

(c) is a corporation, or a member of a corporation, partnership, syndicate or joint venture, in which the applicant or holder or a person referred to in paragraph (a), (b) or (d) has a beneficial interest, or

(d) bears a prescribed relationship to the applicant or holder, or

(e) is a corporation that is a subsidiary (within the meaning of the Corporations Act 2001 of the Commonwealth) of the applicant or holder, or

(f) holds or is entitled to exercise, in respect of the applicant or holder or the business of the applicant or holder, any other relevant financial interest, relevant position or relevant power.

(2) For the purposes of subsection (1) (d), a person bears a prescribed relationship to an applicant or holder of a licence if the relationship is that of:

(a) a spouse, or

(b) a de facto partner who is living or has lived with him or her as his or her wife or husband on a bona fide domestic basis although not married to him or her, or

(c) a child, grandchild, sibling, parent or grandparent, whether derived through paragraph (a) or (b) or otherwise, or

(d) a kind prescribed by the regulations for the purposes of this section.

(3) For the purposes of subsection (1) (f):
"relevant financial interest" means:

(a) any share in the capital of the business, or

(b) any entitlement to receive any income derived from the business, whether the entitlement arises at law or in equity or otherwise.

"relevant position" means the position of director, manager, and other executive positions and secretary, however those positions are designated.
"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 decision, or

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