Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p7
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 7/165)
Character Range: 2412738–2415456

shares held on behalf of the member or to dispose of those shares on behalf of the member;
 (g) shares (also ordinary shares) of the same class in the entity may, within the limitation period, be issued to the trustee on behalf of new members and, in accordance with the choice of each new member, to transfer to the member the shares held on behalf of the member or to dispose of those shares on behalf of the member;
 (h) within the limitation period the trustee:
 (i) sells the ordinary shares issued to the trustee and distributes the proceeds to the member; or
 (ii) transfers the ordinary shares to the member;
 (i) if a listing resolution was passed by the entity—the ordinary shares are listed within the limitation period.
Note: Other things may happen in connection with the implementation of the demutualisation.
 (2) The trustee must be the trustee of a trust established solely for the purposes of performing functions under subsection (1).
 (3) The following diagram shows the main events that occur where this demutualisation method is used.

326‑60  Continuity of beneficial interest test
 (1) This section sets out a test (the continuity of beneficial interest test) that must be satisfied before this Division applies to the demutualisation of a mutual entity.
 (2) The continuity of beneficial interest test is satisfied if:
 (a) an opportunity is given to each existing member of the mutual entity:
 (i) to take up shares in the demutualised entity or in a holding company to which shares in the demutualised entity are issued; or
 (ii) to have shares in the demutualised entity issued to a trustee on behalf of the member; and
 (b) where the demutualisation is implemented by the method set out in section 326‑45, 326‑50 or 326‑55—of the ordinary shares in the demutualised entity or holding company that are issued in connection with the demutualisation (the issued shares), the total number that are issued to existing members or to a trustee on behalf of existing members constitutes at least 90% of the issued shares; and
 (ba) where the demutualisation is implemented by the method set out in section 326‑52:
 (i) of the ordinary shares in the demutualised entity that are issued to members other than the holding company in connection with the demutualisation (the issued entity shares), the total number that are issued to existing members constitutes at least 90% of the issued entity shares; and
 (ii) of the ordinary shares in the holding company that are issued in connection with the demutualisation (the issued holding company shares), the total number that are issued to existing members constitutes at least 90% of the issued holding company shares; and
 (c) the accumulated surplus