Section 7 — Companies Act 1993: Control defined

7 Control defined For the purposes of section 5 of this Act, without limiting the circumstances in which the composition of a company's board is to be taken to be controlled by another company, the composition of the board is to be taken to be so controlled if the other company, by exercising a power exercisable (whether with or without the consent or concurrence of any other person) by it, can appoint or remove all the directors of the company, or such number of directors as together hold a majority of the voting rights at meetings of the board of the company, and for this purpose, the other company is to be taken as having power to make such an appointment if— (a) A person cannot be appointed as a director of the company without the exercise by the other company of such a power in the person's favour; or (b) A person's appointment as a director of the company follows necessarily from the person being a director or other officer of the other company. Compare: Corporations Act 1989 (Aust) s 47