Corporations Act 2001

CHAPTER 2H - SHARES  

PART 2H.1 - ISSUING AND CONVERTING SHARES  

SECTION 254G   CONVERSION OF SHARES  

254G(1)    
A company may:

(a)    convert an ordinary share into a preference share; and

(b)    convert a preference share into an ordinary share.

Note 1: The variation of class rights provisions (sections 246B - 246G ) will apply to the conversion.

Note 2: Section 1230C applies to a CCIV instead of this section.

254G(2)    
A company can convert ordinary shares into preference shares only if the holders ' rights with respect to the following matters are set out in the company ' s constitution (if any) or have been otherwise approved by special resolution of the company:

(a)    repayment of capital;

(b)    participation in surplus assets and profits;

(c)    cumulative and non-cumulative dividends;

(d)    voting;

(e)    

priority of payment of capital and dividends in relation to other shares or classes of preference shares.

254G(3)    
A share that is not a redeemable preference share when issued cannot afterwards be converted into a redeemable preference share.