Income Tax Assessment Act 1997



Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-D - Lost policy holders trust  


SECTION 316-155   Lost policy holders trust  

This Subdivision applies if the conditions in subsections (2) and (5) are met. First condition


The first condition is that, under the demutualisation, a trust (the lost policy holders trust ) exists solely for one or both of the purposes that are described in subsection (3) in relation to persons ( beneficiaries of the lost policy holders trust ) covered by subsection (4).

The purposes are as follows:

(a) holding demutualisation assets (see section 316-110 ) that are *shares or rights to *acquire shares, or proceeds from disposal of those assets, on behalf of one or more beneficiaries of the lost policy holders trust and transferring those assets or proceeds to those beneficiaries;

(b) holding on behalf of one or more beneficiaries of the lost policy holders trust, and paying to them, money payable to them for:

(i) the variation or abrogation of rights attaching to or consisting of the beneficiaries ' interests affected by demutualisation (see paragraph 316-55(1)(b) ); or

(ii) the conversion, cancellation, extinguishment or redemption of those interests.

This subsection covers:

(a) a person who is or has been a *member of the friendly society or is or has been insured through the *friendly society or a health/life insurance subsidiary of the friendly society; and

(b) a *legal personal representative, or beneficiary in the estate, of such a person who has died. Second condition

The second condition is that, under the demutualisation, the trustee of the lost policy holders trust is:

(a) issued with demutualisation assets that are *shares, or rights to *acquire shares; or

(b) paid money described in paragraph (3)(b) to hold and pay to beneficiaries of the lost policy holders trust.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.