INCOME TAX ASSESSMENT ACT 1936

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

Division 326 - DEMUTUALISATION  

Subdivision 326-B - How demutualisation is to be effected  

SECTION 326-50   HOLDING COMPANY METHOD  

326-50(1)  
The holding company method of demutualisation is as follows:


(a) all membership rights in the entity are extinguished;


(b) the entity becomes a company with a share capital;


(c) shares of only one class in the entity are issued to a company (the holding company ) within the limitation period;


(d) shares ( ordinary shares ) of only one class in the holding company are issued within the limitation period to existing members in exchange for the membership rights referred to in paragraph (a);


(e) shares (also ordinary shares ) in the holding company of the same class may be issued within the limitation period to new members;


(f) if a listing resolution was passed by the entity - the ordinary shares are listed within the limitation period.

Note:

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

326-50(2)  
The following diagram shows the main events that occur where this demutualisation method is used.

Holding company method of demutualisation


View surrounding sectionsView surrounding sectionsBack to top


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