INCOME TAX ASSESSMENT ACT 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 974 - Debt and equity interests  

Subdivision 974-F - Related concepts  

SECTION 974-165   974-165   Convertible and converting interests  


An interest (the first interest ) is an interest that will or may convert into another interest (the second interest ) if:


(a) the first interest, or a part of the first interest, must be or may be converted into the second interest; or


(b) the first interest, or a part of the first interest, must be or may be redeemed, repaid or satisfied by:


(i) the issue or transfer of the second interest (whether to the holder of the first interest or to some other person); or

(ii) the acquisition of the second interest (whether by the holder of the first interest or by some other person); or

(iii) the application in or towards paying-up (in whole or in part) the balance unpaid on the second interest (whether the second interest is to be issued to the holder of the first interest or to some other person); or


(c) the holder of the first interest has, or is to have, a right or option to have allotted or transferred to the holder or to some other person, or for the holder or some other person otherwise to acquire:


(i) the second interest; or

(ii) a right or option to acquire the second interest.

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