Company Law Review Act 1998 (61 of 1998)

Schedule 5  

Corporations Law

11   Section 254H

Repeal the section, substitute:

254H Resolution to convert shares into larger or smaller number

(1) A company may convert all or any of its shares into a larger or smaller number of shares by resolution passed at a general meeting.

Note: The variation of class rights provisions (sections 246B-246G) may apply to the conversion.

(2) The conversion takes effect on:

(a) the day the resolution is passed; or

(b) a later date specified in the resolution.

(3) Any amount unpaid on shares being converted is to be divided equally among the replacement shares.

(4) The company must lodge a copy of the resolution with the ASC within 1 month after it is passed.