So I had a first yesterday where we had 2 fireteams in CC with each other, and lots of points of contact. A and B used smoke to get into CC with C but didn't kill him. On Reds turn, D moved up outside of a link, then the Red link was formed (no blue AROS until then). Then the red D moved and CCed on A with 2 B. This allowed Blue to ARO. Here is where I'm not sure we had the proper rules. What we did: A AROed with 1B against D creating a F2F, then B AROed against C with 1B which was uncontested. A= Khawajari (RTF) B= Ghulam (RTF) C,D,E = Veteran Kazaks (TAT) When reviewing the rules below, it looks like A who was the Link leader and may have been the only 1 to allowed to ARO with 2B. Then B would not have been allowed to ARO even though it was in B2B with a separate model. Is this correct? Fireteams and CC Rules : In Close Combat, whether in the Active or Reactive Turn, when several members are engaged in the same CC, only the Team Leader trooper will perform the CC Roll, gaining a MOD of +1 to his B and +1 to the PH Attribute for Damage for each Fireteam member Engaged with the adversary. Other friendly troopers engaged in that CC, who are not members of his Fireteam don't provide any bonus to the Team Leader. In the Reactive Turn, if the Team Leader is not engaged in that CC, the player must choose one of the Fireteam members who are engaged in it to perform the CC Roll, gaining the correspondent MODs for each other Fireteam member engaged in that CC. In ARO, the enemy will be able to target any Fireteam member engaged in the CC, but only one of them.
I think your revised reading is correct. However I also think that A and B could have cancelled their link and then the scenario could play out as in your initial reading.
A and D (the Team Leaders) are the only ones allowed to CC Attack. Note that A can decide to attack C (with bonus for B), because the full Fireteam is activated.