Introduction
This document contains links to information about events affecting listed investments (shares and units) where a significant number of investors are involved.
Key events 2001-02
Companies in liquidation or administration
In the course of winding up a company, the liquidator may declare in writing that he or she has reasonable grounds to believe there is no likelihood that shareholders in the company, or shareholders of a relevant class of shares, will receive any further distribution (CGT event G3 declaration).
If this happens, shareholders can choose to make a capital loss equal to the reduced cost base of a share acquired on or after 20 September 1985. The capital loss arises in the income year in which the liquidator made the declaration.
The cost base and reduced cost base of the shares are reduced to nil just after the liquidator makes the declaration. These reductions are relevant in working out if the shareholder makes a capital gain or capital loss from any later capital gains tax (CGT) event in relation to each share.
Demutualisations
IOOF demutualisation
IOOF Ltd was a Friendly Society that was a mutual company.
On 14 June 2002, the members of IOOF Ltd resolved to demutualise.
On 30 June 2002, IOOF Ltd demutualised and shares in IOOF Holdings Ltd (IOOF) were issued to approximately 70,000 members.
IOOF was listed on the Australian Stock Exchange (ASX) on 4 December 2003.
IOOF demutualisation: impact on individual shareholders outlines the capital gains tax implications of the demutualisation for people who received shares in IOOF Holdings Ltd (IOOF) as a result of the demutualisation of IOOF Ltd.
OFM Investment Group Limited (OFM) demutualisation
Over 50s Mutual Friendly Society Limited (OFM Ltd) was a Friendly Society that was a mutual company.
On 12 June 2001, the members of OFM Ltd resolved to demutualise.
On 1 July 2001, OFM Ltd demutualised and shares in OFM Investment Group Limited (OFM) were issued to about 44,500 members.
OFM was listed on the ASX on 26 March 2002.
OFM Investment Group Limited (OFM) demutualisation: impact on individual shareholders outlines the capital gains tax implications of the demutualisation for people who received shares in OFM Investment Group Limited (OFM) as a result of the demutualisation.
Instalment note exchange
Suncorp-Metway Limited shares: Exchanging Instalment Notes (EINs) - series 2
Suncorp-Metway Ltd shares received in exchange for Series 2 EINs were acquired on 31 October 2001. Their acquisition cost was $13.34 per share.
Suncorp-Metway Limited shares: exchanging instalment note - series 2 contains information for people holding EIN Series 2 for Suncorp-Metway Ltd shares.
More information
For more information about capital gains tax on shares, read the Personal investors guide to capital gains tax.
If you need help in applying this information to your own situation, phone us on 13 28 61.
A listing of the capital gains tax implications of certain actions by Australian companies in 2001-02.