STAMP DUTIES ACT 1923 - SECT 102I

STAMP DUTIES ACT 1923 - SECT 102I

102I—Direct and indirect interests

        (1)         If a corporation (A) holds securities of another corporation (B), A has a "direct interest" in B.

        (2)         The direct interest that A has in B is to be expressed as a proportionate interest calculated by determining the percentage of B's total securities held by A.

Example—

Corporation A holds 75% of corporation B's securities. In this case the proportionate interest of corporation A in corporation B is 75%.

        (3)         Two corporations are "related corporations" if—

            (a)         1 has a direct interest in the other; or

            (b)         a series of such relationships can be traced between them through another or other related corporations.

        (4)         If a corporation (A) has a direct interest in a corporation (B) which is related to another corporation (C), A has an "indirect interest" in C.

        (5)         The indirect interest that a corporation has in another corporation is to be expressed as a proportionate interest calculated by multiplying together—

            (a)         a percentage representing the proportionate interest of A in B; and

            (b)         a percentage representing B's proportionate interest in C,

and expressing the result as a percentage.

Example—

Corporation X holds a proportionate interest of 33⅓% in corporation A which in turn holds a 75% proportionate interest in corporation B which in turn holds a 50% proportionate interest in corporation C. In this case corporation X's indirect interest in corporation C is to be expressed as a proportionate interest of 12.5%.