Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:2_4:p2
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 2 cl 4 (pt 2/5)
Character Range: 68719–71319

(2) You must exchange your original interest in consequence of the offer for:
 (a) if your original interest was a *share or interest in a share in a company:
 (i) a share or interest in a share (your replacement interest) in another company that is the acquiring entity; or
 (ii) a share or interest in a share in the acquiring entity (also your replacement interest) and something else; or
 (b) if your original interest was a unit or other interest in a trust or an interest in such a unit or interest:
 (i) a unit or other interest, or an interest in it (your replacement interest) in another trust that is the acquiring entity; or
 (ii) a unit or interest of that kind in the acquiring entity (also your replacement interest) and something else.

Note: If you receive something else, you can obtain only a partial roll‑over: see section 124‑790.

Rolling‑over options, rights etc.

 (3) Subsections (1) and (2) also allow you to choose to obtain a roll‑over if you exchange an option, right or similar interest issued by the original entity that enables you to *acquire another interest in that entity for the same kind of option, right or similar interest issued by the acquiring entity.

Example: You can get a roll‑over if you exchange your shares in one entity for shares in another entity or if you exchange options in one entity for options in another entity. You cannot get a roll‑over if you exchange options for shares.

Other requirements in certain cases

 (4) The conditions specified in subsection (5) must exist if you and the acquiring entity did not deal with each other at arm's length and:
 (a) neither the original entity nor the acquiring entity has at least 300 members (for a company) or 300 beneficiaries (for a trust) just before you stop owning your original interest; or
 (b) you, the original entity and the acquiring entity are all members of the same *linked group just before that time.

Note: There are some cases where a company or trust will not be regarded as having 300 members or beneficiaries: see section 124‑810.

 (5) The conditions are:
 (a) the market value of your *capital proceeds for the exchange must be substantially the same as the market value of your original interest; and
 (b) each of the interests you acquire in the acquiring entity must carry the same rights and obligations as those attached to interests of that kind you had in the original entity.

124‑785  What is the roll‑over?

 (1) A *capital gain you make from your original interest is disregarded.

 (2) You work out the first element of the *cost base of each *CGT asset you