Income Tax Assessment Act 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS  

Division 326 - DEMUTUALISATION  

Subdivision 326-A - Application, key concepts and related expressions  

SECTION 326-10   MUTUAL ENTITY AND DEMUTUALISATION  

326-10(1)    
An entity is a mutual entity if, and only if, immediately before the demutualisation resolution day, it is a body corporate that:

(a) is not an insurance company within the meaning of subsection 121AB(2) ; and

(b) is not a mutual affiliate company within the meaning of section 121AC ; and

(ba) is not an entity to which item 6.3 of the table in section 50-30 of the Income Tax Assessment Act 1997 (about private health insurers) applies; and

(bb) is not an entity in relation to whose demutualisation Division 316 (Demutualisation of friendly society health or life insurers) of that Act applies; and

(c) is not carried on for the object of securing a profit or pecuniary gain for its members; and

(d) does not have capital divided into shares held by its members; and

(e) does not hold property in which any of its members has a disposable interest (whether directly or indirectly) except in the event of the winding up of the entity.

326-10(1A)    

If the entity is a mutual entity (within the meaning of the Corporations Act 2001 ), then, for the purposes of subsection (1), disregard the following:

(a) any MCIs (within the meaning of that Act) issued by the entity;

(b) any dividends or profits paid or payable in respect of such MCIs;

(c) any members of the entity who are members by virtue of holding such MCIs.

326-10(2)    
A mutual entity that has passed a demutualisation resolution is called a demutualising entity .

326-10(3)    
A mutual entity is demutualised if it ceases to be a mutual entity otherwise than by ceasing to be a body corporate. Such an entity is called a demutualised entity .

326-10(4)    
A reference to a demutualising entity includes a reference to a demutualised entity.