Treasury Laws Amendment (Mutual Reforms) Act 2019 (37 of 2019)

Schedule 2   Mutual capital instruments (MCIs)

Part 1   Amendment of the Corporations Act 2001

Corporations Act 2001

7   At the end of Part 2J.1

Add:

Division 4 - Application of this Part to MCI mutual entities

258G Application of this Part to MCI mutual entities

(1) For the purposes of applying this Part to an MCI mutual entity, a reference (other than in section 258B) to a shareholder of the entity is taken to include a non-shareholder mutual member of the entity.

(2) For the purposes of applying Division 1 to an MCI mutual entity:

(a) any reduction of the entity's share capital that relates to MCIs is taken to be a selective reduction; and

(b) the reference to all ordinary shareholders in paragraph 256C(2)(b) is taken to be a reference to all members of the entity.

(3) For the purposes of applying Division 2 to an MCI mutual entity:

(a) any scheme to buy back MCIs is taken not to be an equal access scheme; and

(b) subsections 257B(4) and (5) (the 10/12 limit) have effect in relation to MCIs issued by a mutual entity as if each MCI were a voting share with one vote attached to it; and

(c) the reference to all ordinary shareholders in paragraph 257D(1)(b) is taken to be a reference to all members of the entity.

(4) To avoid doubt, this section does not have the effect of treating a non-shareholder mutual member's membership of an MCI mutual entity as a share.