Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9AA - Demutualisation of insurance companies and affiliates  

Subdivision B - Key concepts and related definitions  

SECTION 121AH   DEMUTUALISATION METHOD 3  

121AH(1)   [Transactions involved in demutualisation]  

Under demutualisation method 3 , in connection with the implementation of the demutualisation:


(a) all membership rights in the mutual insurance company are extinguished; and


(b) shares in the mutual insurance company are issued to another company (the holding company ); and


(c) shares (the ordinary shares ) of only one class in:


(i) the holding company; or

(ii) another company (the ultimate holding company ) of which the holding company is a wholly-owned subsidiary, either directly or through one or more other wholly-owned subsidiaries (each of which is an interposed holding company );
are issued to each person in the policyholder/member group; and


(d) the ordinary shares are listed within the listing period.

Note:

Other things may also happen in connection with the implementation of the demutualisation.

121AH(2)   [Diagram of transactions]  

The following diagram shows the main events, where this demutualisation method is used.



This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.