INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS  

Division 326 - DEMUTUALISATION  

Subdivision 326-D - CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company  

SECTION 326-130   ADJUSTED FIRST DAY TRADING PRICE OF DEMUTUALISATION SHARES  

326-130(1)  
For the purposes of this Subdivision, the adjusted first day trading price of demutualisation shares is the amount worked out using the formula:


First day trading price of
demutualisation shares  
-   Value of franking surplus  
    Total number of
  demutualisation shares
        issued

326-130(2)  


In this section:

first day trading price of demutualisation shares
means the price per share, as published by ASX Limited, at which the demutualisation shares were last traded, on the stock market operated by ASX Limited, on the demutualisation listing day.

value of franking surplus
means the value, as determined by a qualified valuer, of the franking surplus of the demutualised entity on the demutualisation listing day.


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