Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p11
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 11/22)
Character Range: 389600–392139

shares in the company issued to all the exchanging members (worked out just after the completion time);

must equal the ratio of:

 • the market value of that member's units in the unit trust that were disposed of to the company to the market value of all the units that were disposed of to the company (worked out just before the first disposal).

Example: There are 1,000 units in the A unit trust, all having the same rights. B Pty Ltd acquires all the units in A by issuing each unitholder in A 10 shares in itself for each 100 units they have in A. All shares in B have the same rights. Brian owned 300 units in A and received 30 shares in B in exchange.

 (4) Either:

 (a) you are an Australian resident at the time you *disposed of your units in the unit trust; or

 (b) if you are not an Australian resident at that time—your units have the *necessary connection with Australia.

Redemption or cancellation case

124‑455  Redemption or cancellation of units in a unit trust for shares in a company

 (1) You can choose to obtain a roll‑over if you are a member of a unit trust and under a *scheme for reorganising its affairs:

 (a) a company *acquires no more than 5 units in the trust; and

 (b) these are the first units that the company acquires in the trust; and

 (c) you and at least one other entity (the exchanging members) own all the remaining units in the trust; and

 (d) the trustee redeems or cancels those remaining units; and

 (e) each exchanging member receives *shares (and nothing else) in the company in return for their units being redeemed or cancelled;

and the requirements in sections 124‑460 and 124‑465 are satisfied.

Note: The roll‑over consequences are set out in Subdivision 124‑A. The original assets are your units in the unit trust. The new assets are your new shares in the company.

 (2) The trustee of the unit trust can issue other units to the company as part of the scheme.

Note: Some of the company's units in the unit trust may be taken to be acquired before 20 September 1985: see section 124‑470.

124‑460  Other requirements to be satisfied

 (1) The company must own all the units in the unit trust just after all the exchanging members have had their units in the unit trust redeemed or cancelled (the completion time).

 (2) Just after the completion time, each exchanging member must own:

 (a) a whole number of *shares in the company; and

 (b) a percentage of the *shares in the company that were issued to all the exchanging members that is equal to