Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9AA - Demutualisation of insurance companies and affiliates  

Subdivision B - Key concepts and related definitions  

SECTION 121AH   DEMUTUALISATION METHOD 3  

121AH(1)   [Transactions involved in demutualisation]  

Under demutualisation method 3 , in connection with the implementation of the demutualisation:

(a) all membership rights in the mutual insurance company are extinguished; and

(b) shares in the mutual insurance company are issued to another company (the holding company ); and

(c) shares (the ordinary shares ) of only one class in:

(i) the holding company; or

(ii) another company (the ultimate holding company ) of which the holding company is a wholly-owned subsidiary, either directly or through one or more other wholly-owned subsidiaries (each of which is an interposed holding company );

are issued to each person in the policyholder/member group; and

(d) the ordinary shares are listed within the listing period.

Note:

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

121AH(2)   [Diagram of transactions]  

The following diagram shows the main events, where this demutualisation method is used.