Subsuming
Businesses can be subsumed in 2 main ways:
1) A business is a member of 2 or more groups at the same time.
For example:
Able Pty Ltd is grouped with Bravo Pty Ltd because they have common directors
Bravo Pty Ltd is grouped with Charlie Pty Ltd because they have common shareholders.
Bravo Pty Ltd is a member of 2 groups and so all 3 are subsumed into a larger group.
2) The members of a group have together a controlling interest in another business.
For example:
Delta Pty Ltd and Echo Pty Ltd have common shareholders and are grouped
Delta Pty Ltd holds 30% of the units in the Foxtrot Unit trust
Echo Pty Ltd holds 30% of the units in the Foxtrot Unit trust.
As Delta Pty Ltd and Echo Pty Ltd are grouped, their interests in the unit trust are combined, forming a group of all 3 businesses.
Exclusion provisions: Under this provision a business may apply for an exclusion from the group.
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