Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 17/64)
Character Range: 3336489–3339291

amount of the excess.

197‑20  Exclusion for amounts transferred leading to there being no shares with a par value—non‑Corporations Act companies
  This Division does not apply to the transferred amount if:
 (a) immediately before the transfer of the amount, the company was not incorporated under the Corporations Act 2001; and
 (b) the transfer is under, or in accordance with, an *Australian law that requires or allows either or both of the following to become part of the company's *share capital account:
 (i) the company's share premium account;
 (ii) the company's capital redemption reserve; and
 (c) the transfer is made as part of a process that leads to there being no *shares in the company that have a par value; and
 (d) the amount is transferred from the company's share premium account or capital redemption reserve.

197‑25  Exclusion for transfers from option premium reserves
  This Division does not apply to the transferred amount if:
 (a) it is transferred from an option premium reserve of the company; and
 (b) the transfer is because of the exercise of options to acquire *shares in the company; and
 (c) premiums in respect of those options were credited to the option premium reserve.

197‑30  Exclusion for transfers made in connection with demutualisations of non‑insurance etc. companies
 (1) Subject to subsection (2), this Division does not apply to the transferred amount if:
 (a) the amount is transferred in connection with a demutualisation of the company; and
 (b) Division 326 in Schedule 2H to the Income Tax Assessment Act 1936 applies to the demutualisation; and
 (c) the transfer occurs within the limitation period in relation to the demutualisation (see subsection 326‑20(3) in that Schedule).
 (2) If the sum of:
 (a) the transferred amount; and
 (b) any other amounts that were previously transferred to the company's *share capital account, from another account of the company, in connection with the demutualisation;
exceeds the total capital contributions amount described in whichever of subsections (3) and (4) applies, subsection (1) does not stop this Division from applying to so much of the transferred amount as equals the lesser of the transferred amount and the amount of the excess.
Note: If there are several transfers of amounts to the company's share capital account in connection with the demutualisation, this section must be applied separately in relation to each transferred amount, in the order in which the transfers are made.
 (3) If the company was not formed by the merger of 2 or more mutual entities, the total capital contributions amount referred to in subsection (2) is the sum of all the capital amounts:
 (a) that were contributed to the company by *members of the company before its demutualisation; and
 (b) in respect of