THE CORPORATIONS LAW

CHAPTER 2B - BASIC FEATURES OF A COMPANY

PART 2B.7 - CHANGING COMPANY TYPE

SECTION 166   EFFECT OF CHANGE OF TYPE  

166(1)  [Effect of change]  

A change of type does not:

(a)  create a new legal entity; or

(b)  affect the company's existing property, rights or obligations (except as against the members of the company in their capacity as members); or

(c)  render defective any legal proceedings by or against the company or its members.

166(2)  [Company limited by guarantee]  

On the change of type of a company from a company limited by guarantee to a company limited by shares:

(a)  the liability of each member and past member as a guarantor on the winding up of the company is extinguished; and

(b)  the members cease to be members of the company; and

(c)  if shares are to be issued to a person as specified in the list referred to in subsection 163(3):

(i) the shares are taken to be issued to that person; and
(ii) the person is taken to have consented to be a member of the company; and
(iii) the person becomes a member of the company.
Note:

The company must maintain a register of members that complies with subsection 169(3).


 

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