Corporations Act 2001

CHAPTER 2H - SHARES  

PART 2H.1 - ISSUING AND CONVERTING SHARES  

SECTION 254H   RESOLUTION TO CONVERT SHARES INTO LARGER OR SMALLER NUMBER  

254H(1)   [ Consolidation or division]  

A company may convert all or any of its shares into a larger or smaller number of shares by resolution passed at a general meeting.

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

254H(2)   [ Conversion]  

The conversion takes effect on:


(a) the day the resolution is passed; or


(b) a later date specified in the resolution.

254H(3)   [ Unpaid amount]  

Any amount unpaid on shares being converted is to be divided equally among the replacement shares.

254H(4)   [ Lodgment with ASIC]  

The company must lodge a copy of the resolution with ASIC within 1 month after it is passed.

254H(5)   [ Strict liability offence]  

An offence based on subsection (4) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .


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