Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.4 - CORPORATE FINANCE AND FINANCIAL REPORTING FOR CCIVs  

Division 1 - Shares  

Subdivision A - Issuing and converting shares in a CCIV  

SECTION 1230C   CONVERSION OF SHARES  

1230C(1)    
A CCIV may convert a share of any kind into a share of a kind mentioned in an item in column 1 of the following table if the requirements (if any) specified in column 2 of the item are met.

Conversion of shares
Item	Column 1 To convert a share into a share of this kind:	Column 2 These requirements must be met:
1	An ordinary share (other than a redeemable share)	No specified requirements (but see Note 1)
2	A redeemable share	The conversion has been approved by a special resolution of the sub-fund of the CCIV to which the share is referable (see also Notes 1 and 2)
3	A preference share (other than a redeemable preference share)	The holders ' rights with respect to the matters mentioned in subsection 254G(2) are set out in the CCIV ' s constitution (if any) or have been otherwise approved by special resolution of the sub-fund of the CCIV to which the share is referable (see also Note 1)

Note 1: The variation of class rights provisions (sections 246B to 246G ) will apply to the conversion.

Note 2: For a director ' s duty to prevent insolvent trading on converting shares into redeemable shares, see sections 588G and 1238C .

1230C(2)    
A CCIV may not convert a share into a redeemable preference share.

1230C(3)    
A CCIV may convert all or any of its shares into a larger or smaller number. Any amount unpaid on shares being converted is to be divided equally among the replacement shares.

1230C(4)    
This section replaces sections 254G and 254H for a CCIV.