Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 7/22)
Character Range: 379919–382669

shares in B have the same rights. Bill owned 15 shares in A and received 150 shares in B in exchange.

 (4) Either:

 (a) you are an Australian resident at the time you *disposed of your *shares in the original company; or

 (b) if you are not an Australian resident at that time—your *shares in the original company have the *necessary connection with Australia.

Redemption or cancellation case

124‑370  Redemption or cancellation of shares in one company for shares in another one

 (1) You can choose to obtain a roll‑over if you are a *member of a company (the original company) and under a *scheme for reorganising its affairs:

 (a) another company (the interposed company) *acquires no more than 5 *shares in the original company; and

 (b) these are the first shares that the interposed company acquires in the original company; and

 (c) you and at least one other entity (the exchanging members) own all the remaining shares in the original company; and

 (d) the original company redeems or cancels those remaining shares; and

 (e) each exchanging member receives shares (and nothing else) in the interposed company in return for their shares in the original company being redeemed or cancelled;

and the requirements in sections 124‑375 and 124‑380 are satisfied.

Note: The roll‑over consequences are set out in Subdivision 124‑A. The original assets are your shares in the original company. The new assets are your new shares in the interposed company.

 (2) The original company can issue other *shares in itself to the interposed company as part of the scheme.

Note: Some of the interposed company's shares in the original company may be taken to be acquired before 20 September 1985: see section 124‑385.

124‑375  Other requirements to be satisfied

 (1) The interposed company must own all the *shares in the original company just after all the exchanging members have had their shares in the original company redeemed or cancelled (the completion time).

 (2) Just after the completion time, each exchanging member must own:

 (a) a whole number of *shares in the interposed company; and

 (b) a percentage of the *shares in the interposed company that were issued to all the exchanging members that is equal to the percentage of the shares in the original company (that were redeemed or cancelled) that the member owned.

 (3) The ratio of:

 • the market value of each exchanging member's *shares in the interposed company to the market value of the shares in the interposed company issued to all the exchanging members (worked out just after the completion time);

must equal the ratio of:

 • the market value of that member's shares in the original company that were redeemed or cancelled to the