§ 42 — Meaning of holding an equity interest

42.—(1) For the purpose of this Part, a person holds an equity interest if the person —(a)

has or is deemed to have an equity interest in accordance with subsections (2) to (6); or

(b)

otherwise has a legal or an equitable interest in that equity interest,

except for any interest prescribed by the Regulations as an interest that is to be disregarded.

(2) Subject to subsection (3), a person has an equity interest if the person has authority (whether formal or informal, or express or implied) to dispose of, or to exercise control over the disposal of, that equity interest.

(3) It is immaterial that the authority of a person to dispose of, or to exercise control over the disposal of, the equity interest mentioned in subsection (2) is, or is capable of being made, subject to restraint or restriction.

(4) It is immaterial, for the purposes of determining whether a person has an equity interest, that the interest cannot be related to a particular share, an interest or a right that gives its holder voting power, or a unit of a business trust, as the case may be.

(5) A person is deemed to have an equity interest if —(a)

any property held in trust consists of or includes the equity interest; and

(b)

that person knows, or has reasonable grounds for believing, that that person has an interest under that trust.

(6) A person is also deemed to have an equity interest if that person —(a)

has entered into a contract to purchase the equity interest;

(b)

has a right, otherwise than by reason of having an interest under a trust, to have the equity interest transferred to (or to the order of) that person, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;

(c)

has the right to acquire the equity interest under an option, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not; or

(d)

is entitled (otherwise than by reason of having been appointed a proxy or representative to vote (as the case may be) at a general meeting of the entity, a general meeting of the unitholders of the business trust, or a general meeting of the beneficiaries of the trust in question) to exercise or control the exercise of a right attached to the equity interest, not being an equity interest in which that person has a legal or an equitable interest.

—(1) For the purpose of this Part, a person holds an equity interest if the person —(a)

has or is deemed to have an equity interest in accordance with subsections (2) to (6); or

(b)

otherwise has a legal or an equitable interest in that equity interest,

except for any interest prescribed by the Regulations as an interest that is to be disregarded.

(2) Subject to subsection (3), a person has an equity interest if the person has authority (whether formal or informal, or express or implied) to dispose of, or to exercise control over the disposal of, that equity interest.

(3) It is immaterial that the authority of a person to dispose of, or to exercise control over the disposal of, the equity interest mentioned in subsection (2) is, or is capable of being made, subject to restraint or restriction.

(4) It is immaterial, for the purposes of determining whether a person has an equity interest, that the interest cannot be related to a particular share, an interest or a right that gives its holder voting power, or a unit of a business trust, as the case may be.

(5) A person is deemed to have an equity interest if —(a)

any property held in trust consists of or includes the equity interest; and

(b)

that person knows, or has reasonable grounds for believing, that that person has an interest under that trust.

(6) A person is also deemed to have an equity interest if that person —(a)

has entered into a contract to purchase the equity interest;

(b)

has a right, otherwise than by reason of having an interest under a trust, to have the equity interest transferred to (or to the order of) that person, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;

(c)

has the right to acquire the equity interest under an option, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not; or

(d)

is entitled (otherwise than by reason of having been appointed a proxy or representative to vote (as the case may be) at a general meeting of the entity, a general meeting of the unitholders of the business trust, or a general meeting of the beneficiaries of the trust in question) to exercise or control the exercise of a right attached to the equity interest, not being an equity interest in which that person has a legal or an equitable interest.