Document ID: chunk:federal_register_of_legislation:F2022C01160:reg:20:p2
Version: federal_register_of_legislation:F2022C01160
Segment Type: reg
Provision Reference: reg 20 (pt 2/2)
Character Range: 53542–55248

is that:
 (a) a company redeems or cancels all the shares of a particular class in the company; and
 (b) an entity holds shares of that class in the company; and
 (c) the company issues to the entity other shares in the company in substitution for the redeemed or cancelled shares; and
 (d) the market value of the new shares immediately after they were issued is not less than the market value of the redeemed or cancelled shares immediately before the redemption or cancellation; and
 (e) the entity did not receive any consideration (other than the new shares) in respect of the redemption or cancellation.
 (8) For the purposes of subsection (3), the circumstance is that:
 (a) an entity owns an option to acquire shares in a company or a right, issued by a company, to acquire shares in the company or to acquire an option to acquire shares in the company; and
 (b) any of the shares:
 (i) are consolidated and divided into new shares of a larger amount; or
 (ii) are subdivided into shares of a smaller amount; and
 (c) as a result of the consolidation or subdivision:
 (i) the original option is cancelled; or
 (ii) the original right is cancelled; and
 (d) the company issues to the entity:
 (i) another option relating to the new shares in substitution for the original option; or
 (ii) another right relating to the new shares, in substitution for the original right; and
 (e) the market value of the new option or the new right, immediately after it was issued, is not less than the market value of the original option or original right immediately before its cancellation; and
 (f) the entity did not receive any consideration in respect of the cancellation, other than the new option or right.