386AB. Interpretation of this Part

Question 1

386AB. Interpretation of this Part

Answer 1

General overview
[386AB.01] This section provides the definitions of the terms used in Part XIA of the Act such as “controller”, “corporate controller”, “individual controller”, “register of controllers”, “significant control”, “significant interest”, etc.

Question 2

Interpretation of terms

Answer 2

[386AB.02] Section 386AB contains, inter alia, the definitions of terms such as “controller”, “significant control” and “significant interest”. The meaning of “significant interest” and “significant control” are defined in the Sixteenth Schedule to the Act. Generally, “significant interest” means an individual or legal entity having more than 25% of the shares in the company or foreign company, or having a voting power of more than 25% of the total voting power in the company or foreign company. In respect of a company or foreign company without a share capital, “significant interest” means an individual or legal entity having, directly or indirectly, a right to share in more than 25% of the capital or profits thereof. “Significant control” means an individual or legal entity holding the right, directly or indirectly, to appoint or remove a director or equivalent persons of the company or foreign company, and who holds the majority of the voting rights at board meetings on all or substantially all matters; or holds, directly or indirectly, more than 25% of the rights to vote on matters that are to be decided by members of the company or foreign company; or has the right to exercise significant influence or control over the company or foreign company. In respect of significant influence or control over a company or foreign company, see “shadow” and de facto directors in s 4. Section (7)(1A)–(6A), (8), (9) and (10) apply to ascertain whether a person has an interest in a share when determining “significant interest” under Part XIA.