Document ID: chunk:federal_register_of_legislation:C2025C00014:section:327b:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 327B (pt 1/3)
Character Range: 1879841–1882557

327B  Transitional finance shares

Meaning of transitional finance shares
 (1) For the purposes of this Part, shares (in this subsection called the test shares) in a company (in this subsection called the second company) are transitional finance shares at a particular time (in this subsection called the test time) if all of the following conditions are satisfied:
 (a) the test time is before 1 July 1998;
 (b) the test shares are finance shares;
 (c) during a period (in this subsection called the primary issue period) ending before the IP time, another company (in this subsection called the first company) issued widely distributed finance shares;
 (d) the issue of the widely distributed finance shares comprised the whole of a common issue of shares by the first company;
 (e) the issue of the test shares comprised the whole of a common issue of shares by the second company;
 (f) the test shares were simultaneously issued to the first company by the second company at, or within a reasonable time after, the end of the primary issue period;
 (g) the widely distributed finance shares were issued by the first company for the sole purpose of funding the first company's acquisition of the test shares;
 (h) assuming that the test shares had been issued at the end of the primary issue period, the following conditions would have been satisfied at all times during the period commencing at the end of the primary issue period and ending at the test time:
 (i) the rights and obligations relating to the widely distributed finance shares are substantially similar to the rights and obligations relating to the test shares;
 (ii) the first company and the second company are under common ownership;
 (i) if, on the assumption that the dividends in respect of the test shares were instead payments of the interest, referred to in subsection (2), to which they may reasonably be regarded as equivalent, the following conditions would have been satisfied in relation to that interest:
 (i) the interest that accrued during the 24‑month period ending at the test time accrued at intervals not exceeding 12 months;
 (ii) the interest that accrued during the 12‑month period commencing 24 months before the test time was paid not later than 12 months after it accrued;
 (iii) the dividends paid in respect of the widely distributed finance shares during the 12‑month period ending at the test time are wholly attributable to the interest that accrued during the 12‑month period ending at the time the dividends were paid;
 (iv) the total amount of dividends paid in respect of the widely distributed finance shares during the 12‑month period ending at the test time is equal to, or approximately equal to, the total