Corporations Act 2001

CHAPTER 2H - SHARES  

PART 2H.1 - ISSUING AND CONVERTING SHARES  

SECTION 254H   RESOLUTION TO CONVERT SHARES INTO LARGER OR SMALLER NUMBER  

254H(1)    
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.

Note 1: The variation of class rights provisions (sections 246B - 246G ) may apply to the conversion.

Note 2: Section 1230C applies to a CCIV instead of this section.

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.

254H(5)    

An offence based on subsection (4) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .