Income Tax Assessment Act 1936
View history note
Hide history noteThe holding company method of demutualisation is as follows:
(a) all membership rights in the entity are extinguished;
(b) the entity becomes a company with a share capital;
(c) shares of only one class in the entity are issued to a company (the holding company ) within the limitation period;
(d) shares ( ordinary shares ) of only one class in the holding company are issued within the limitation period to existing members in exchange for the membership rights referred to in paragraph (a);
(e) shares (also ordinary shares ) in the holding company of the same class may be issued within the limitation period to new members;
(f) if a listing resolution was passed by the entity - the ordinary shares are listed within the limitation period.
Note:
Other things may happen in connection with the implementation of the demutualisation.
326-50(2)
The following diagram shows the main events that occur where this demutualisation method is used.
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