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Associated entity
Practical Law ANZ Glossary w-010-1685 (Approx. 4 pages)
Glossary
Associated entity
For the purposes of the Corporations Act 2001 (Cth) (CA 2001), the meaning given in section 50AAA of the CA 2001.
Under the Fair Work Act 2009 (Cth) (FW Act), the meaning given by section 50AAA of the CA 2001 (section 12, FW Act).
In that context, under section 50AAA of the CA 2001, one entity (first employer) is an associated entity of the other (second employer) where any of the following apply:
- The first employer and the second employer are related bodies corporate (section 50AAA(2), CA 2001).
- The first employer controls the second employer (section 50AAA(3), CA 2001).
- The second employer controls the first employer and the operations, resources or affairs of the first employer are material to the second employer (section 50AAA(4), CA 2001).
- The second employer has a qualifying investment in the first employer, has significant influence over the first employer and the interest is material to the second employer (section 50AAA(5), CA 2001).
- The first employer has a qualifying investment in the second employer, has significant influence over the second employer and the interest is material to the first employer (section 50AAA(6), CA 2001).
- A third party entity controls both the first employer and the second employer and the operations, resources or affairs of the first employer and the second employer are both material to the third party (section 50AAA(7), CA 2001).
Control is defined in section 50AA of the CA 2001 as when one entity can make decisions that determine the financial and operating policies of the second entity. For more information, see Control.
Qualifying investment is defined in section 50AAA(8) of the CA 2001.
Related body corporate is defined in section 50 of the CA 2001. For more information, see Related body corporate.
The definition of associated entity may be relevant to determining whether there has been a transfer of employment or a transfer of business. See Practice note, Service and continuous service: Effect of a transfer of employment on service and continuous service. This may impact on an employee's safety net entitlements (including under the National Employment Standards) and employer obligations.
The definition is also important to the following concepts in the unfair dismissal jurisdiction:
- The scope of an employer's redeployment obligations for there to be a genuine redundancy. See Practice note, Genuine redundancy: Redeployment.
- An order for reinstatement (the primary remedy in the unfair dismissal jurisdiction). See Practice note, Reinstatement as a remedy for unfair dismissal.
- Whether or not an employer is a small business employer. See Practice note: overview, Overview of the federal unfair dismissal regime: Small Business Fair Dismissal Code.