Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p34
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 34/66)
Character Range: 6410586–6413251

mentioned in section 719‑85, unless the provision is expressed to apply despite this subsection.
Note: An example of the effect of this subsection is that section 701‑5 (Entry history rule) does not apply. See instead section 719‑90.
 (2) To avoid doubt, subsection (1) does not affect the application of subsection 701‑1(1) (the single entity rule).
 (3) A provision of this Part that applies on an entity ceasing to be a *subsidiary member of a *MEC group does not apply to an entity being taken to cease being such a member because the entity became the *head company of the group as mentioned in section 719‑85, unless the provision is expressed to apply despite this subsection.
Note: An example of the effect of this subsection is that section 701‑40 (Exit history rule) does not apply. See instead section 719‑90.

Subdivision 719‑BA—Group conversions involving MEC groups

Table of sections
719‑120 Application
719‑125 Head company of new group retains history of head company of old group
719‑130 Provisions of this Part not to apply to conversion
719‑135 Provisions of this Part applying to conversion despite section 719‑130
719‑140 Other provisions of this Part not applying to conversion

719‑120  Application
 (1) This Subdivision applies if, at a particular time (the conversion time):
 (a) a *consolidated group (the new group) is *created from a *MEC group (the old group); or
 (b) a MEC group (the new group) is created from a consolidated group (the old group).
 (2) However, sections 719‑130 and 719‑135 apply only in relation to entities that:
 (a) were *members of the old group just before the conversion time; and
 (b) are members of the new group at that time.

719‑125  Head company of new group retains history of head company of old group
 (1) Everything that happened in relation to the *head company of the old group before the conversion time is taken instead to have happened in relation to:
 (a) if the head company of the old group is the same entity as the head company of the new group—that entity in its role as head company of the new group; or
 (b) otherwise—the head company of the new group (just as if the head company of the new group had been the head company of the old group at all times before the conversion time).
 (2) To avoid doubt, subsection (1) also covers everything that, immediately before the conversion time, was taken to have happened in relation to the *head company of the old group because of:
 (a) section 701‑1 (the single entity rule); or
 (b) section 701‑5 (the entry history rule); or
 (c) section 703‑75 (about the effects of choice to continue *consolidated group after shelf company becomes new