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 2002-03
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 (a 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.
Demergers
View shareholder information on demergers.
BHP Billiton group demerger
Under the demerger, BHP Steel Ltd and its subsidiaries were demerged from the BHP Billiton Group. The demerger involved a return of capital of $0.69 per share in BHP Billiton Ltd. This amount was compulsorily applied as consideration for the acquisition of shares in BHP Steel Ltd. BHP Billiton Ltd shareholders were entitled to one share in BHP Steel Ltd for every five of their BHP Billiton Ltd shares.
BHP Billiton Ltd shareholders who did not want to keep their BHP Steel Ltd shares could sell them through a sale facility for $2.80 each. Alternatively, shareholders wishing to acquire more BHP Steel Ltd shares could buy them through the facility for this amount.
Demergers: 2002 BHP Billiton group demerger addresses commonly asked questions about the impact on resident individual shareholders of the 2002 BHP Billiton group demerger of BHP Steel Ltd.
CSR Ltd demerger
Under the demerger, Rinker Group Ltd (Rinker) was demerged from CSR Ltd (CSR). The demerger involved a return of capital of $0.84 and a demerger dividend of $0.69 per share in CSR. Pursuant to a scheme of arrangement, these amounts were paid by CSR to Rinker on behalf of shareholders for the issue of shares by Rinker to CSR shareholders. CSR shareholders received one Rinker share for every one of their CSR shares.
Demergers: 2003 CSR Ltd demerger addresses commonly asked questions about the impact on resident individual shareholders of the 2003 CSR Ltd demerger from Rinker Group Ltd.
Sonic Healthcare Ltd demerger
Under the demerger, SciGen Ltd (SciGen) was demerged from Sonic Healthcare Ltd (Sonic) on 27 November 2002. The demerger involved a return of capital of $0.148 per share in Sonic. This amount was compulsorily applied as consideration for the acquisition of shares in SciGen, in the form of CHESS Units of Foreign Securities (CUFS). Sonic shareholders were entitled to one SciGen share (in the form of a CUFS) for every one of their Sonic shares.
Demergers: 2002 Sonic Healthcare Ltd demerger addresses commonly asked questions about the impact on resident individual shareholders of the Sonic Healthcare Ltd demerger from SciGen Ltd.
Demutualisation
Hibernian Friendly Society (NSW)
Hibernian was a friendly society that was a mutual company.
On 2 September 2002, the members of Hibernian resolved to demutualise.
On 18 October 2002, Hibernian demutualised and shares in Hibernian were issued to about 6,200 members.
On 23 March 2004, amendments were made to the tax law which extended certain tax concessions to taxpayers who receive shares when a friendly society demutualises on or after 1 July 2000. These concessions apply to members of Hibernian who received shares when it demutualised.
Hibernian changed its name to Aevum in May 2004.
Hibernian demutualisation: impact on shareholders contains information for those who received shares in Hibernian Friendly Society (NSW) Limited (Hibernian) as a result of its demutualisation in 2002.
Merger
Pivot merger with Incitec - CGT on sale of pre-CGT shares
Pivot merged with Incitec Fertilizers Limited (IFL) on 1 June 2003. The merger was accomplished by Pivot acquiring the shares in IFL. Existing shareholders in Pivot retained their shares under the merger.
Pivot merger with Incitec - CGT on sale of pre-CGT shares provides an explanation of capital gains tax for Australian resident shareholders who sell pre-CGT Pivot Limited shares, on or after 28 July 2003 and on or before 28 July 2008, because of the merger with Incitec Fertilizers Limited.
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 2002-03.