- Place of effective management” is defined in the Act to mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance, made.
- Effective management – The words Effective Management refer to actual management and not just formal management
- Key Management – Key persons who actually manage the company are to be considered and not formal Board of Directors only
- Key management and commercial decision – decisions which are concerned with broader strategic and policy decision. For example, a decision to open a major new manufacturing facility or to discontinue a major product line would be examples of key commercial decisions affecting the company’s business as a whole
- The place where the Key Management takes important commercial decisions is the place where POEM is situated.
