Section 852DC — Corporations Act 2001: Meaning of passes the legitimate control test

A person passes the legitimate control test for having a particular percentage of voting power in a controlled Australian financial body unless it is reasonable to expect that the person’s having of that percentage of voting power in the body would adversely affect: (a) if the body is a licensee mentioned in any of subparagraphs 852DA(2)(b)(i) to (iv)—the body’s ability to meet one or more of its obligations as such a licensee under this Act; or (b) if the body is the holding company of a licensee mentioned in any of subparagraphs 852DA(2)(b)(i) to (iv)—the licensee’s ability to meet one or more of its obligations as such a licensee under this Act.