Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 4/165)
Character Range: 2405218–2407928

on the demutualisation resolution day or such further period as the Commissioner allows.

326‑25  Demutualisation shares
  The demutualisation shares, in relation to a demutualised entity, are:
 (a) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑45(1)(c) and (d); and
 (b) the ordinary shares in the holding company that are issued as mentioned in paragraphs 326‑50(1)(d) and (e); and
 (ba) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑52(1)(c) and (e); and
 (bb) the ordinary shares in the holding company that are issued as mentioned in paragraphs 326‑52(1)(f) and (g); and
 (c) the ordinary shares in the entity that are issued as mentioned in paragraphs 326‑55(1)(f) and (g); and
 (d) the special shares in the entity that are issued as mentioned in paragraph 326‑55(1)(c).

326‑30  Existing members and new members
 (1) An existing member of a mutual entity that demutualises is:
 (a) a person who was a member of the entity on the earlier of the following days:
 (i) the demutualisation resolution day;
 (ii) the share allocation cut‑off day; or
 (b) a person who became entitled to an allocation of demutualisation shares because of the death of a person referred to in paragraph (a).
 (2) If the members of a mutual entity that is being demutualised have passed or pass a resolution to the effect that any person who became or becomes a member after a specified day is not entitled to an allocation of demutualisation shares, that day is the share allocation cut‑off day in relation to the demutualisation of the entity.
 (3) A new member of a mutual entity that demutualises is a person who is a member of the entity other than an existing member.
 (4) A reference to a member of a mutual entity that demutualises is taken, unless the contrary intention appears, to be a reference to a person who is an existing member or a new member of the entity.

326‑35  Pre‑CGT members and post‑CGT members
 (1) A person is a pre‑CGT member of a demutualising entity if:
 (a) the person's membership rights in the entity are a pre‑CGT asset within the meaning of the Income Tax Assessment Act 1997; or
 (b) both of the following apply:
 (i) the person acquired membership rights in the entity by disposing of membership rights in another mutual entity; and
 (ii) the person acquired membership rights in the other entity before 20 September 1985.
 (2) A person is a post‑CGT member of a demutualising entity if the person is not a pre‑CGT member.

Subdivision 326‑B—How demutualisation is to be effected

Table of sections
326‑40 Methods of demutualisation
326‑45 Direct method
326‑50 Holding company method
326‑52 Combined direct and holding