Businesses controlled by the same person

An interest of more than 50% is a controlling interest.

A controlling interest can be held by one person or a group of people if no individual has control of the business. In the table below, ‘person’ means an individual or a group of people.

Business type	Person with controlling interest
Company	A person who is entitled to exercise more than 50% of the voting power: at director meetings or attached to voting shares that the company has issued.
Body incorporate or unincorporate	A person who constitutes or controls more than 50% of the management board.
Partnership	A person who: owns more than 50% of the capital or is entitled to more than 50% of the profits.
Trust	A person who is a beneficiary of more than 50% of the value of the trust that carries on the business. Under a discretionary trust, all beneficiaries are deemed to have a controlling interest.
Individual	Sole business owner (whether or not as trustee) or a set of persons who own a business as trustee.

Different types of businesses can be grouped, if the same person/s have a controlling interest.

For example:

• S Pty Ltd and C Pty Ltd are related companies.
• C Pty Ltd has a more than 50% interest in A Partnership.
• S Pty Ltd has a more than 50% interest in B Partnership.

As C Pty Ltd is a subsidiary of S Pty Ltd, S Pty Ltd is also deemed to have a controlling interest of A Partnership.

S Pty Ltd, C Pty Ltd, B Partnership and A Partnership are all grouped.