Corporations Act 2001
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. 254H(2)
The conversion takes effect on:
(a) the day the resolution is passed; or
(b) a later date specified in the resolution. 254H(3)
Any amount unpaid on shares being converted is to be divided equally among the replacement shares. 254H(4)
The company must lodge a copy of the resolution with ASIC within 1 month after it is passed.
[ CCH Note: S 254H(4) will be amended by No 69 of 2020, s 3, Sch 1, by substituting " the Registrar " for " ASIC " , (effective 22 June 2022 or a day or days to be fixed by Proclamation).]
An offence based on subsection (4) is an offence of strict liability.
Note: For strict liability , see section 6.1 of the Criminal Code .
[ CCH Note: The next section is s 254J.]