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 121AF   DEMUTUALISATION METHOD 1  

121AF(1)   [ Transactions involved in demutualisation ]  

Under demutualisation method 1 , in connection with the implementation of the demutualisation:

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

(b) shares (the ordinary shares ) of only one class in the mutual insurance company are issued to each person in the policyholder / member group; and

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

Note:

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

121AF(2)   [ Diagram of transactions ]  

The following diagram shows, where this demutualisation method is used, the issue of the shares to the policyholder / member group.