Corporate Law Economic Reform 7 a.k.a. CLERP 7 introduced changes to how Australian companies are managed and regulated from 1 July 2003.
One interesting aspect is the requirment to report the Ultimate Holding Company of a Company. Does that mean that private companies whose shares are owned by corporate trustees (as trustee for a trust) have an ultimate holding company?
It took some digging but Division 6 (specifically s48 of the Corporations Act 2001 seems to say that fiduciary capacities are ignored. So for now, none of the companies on whose boards I sit are subsidiaries. I think I like it that way.
But by virtue of the definition of related body corporate they are all related entities. Actually the definition makes my brothers’-in-law companies related entities even though we are in different industries.
It might be time for Six Degrees of Australian Boardrooms. Itâ€™s a bit like Six Degrees of Kevin Bacon but I suspect related entity rules would see me and say Janet Holmes a Court being no more than three degrees away.
Try it, you may like it.
Update 1 June 2006: If this post was useful, please leave a comment. My logs show this is one of the most popular posts on the site, it would be nice to get a “hi” from some of you.