Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_33:p2
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 33 (pt 2/3)
Character Range: 19258–21824

capital account if the interest consists, for example, of a stapled security that includes a share in the company's capital.

 (2) If a *debt interest in the company changes at a particular time to an *equity interest in the company because of section 974‑110, there is a credit to the *non‑share capital account at that time equal to:
where:

amount received is the market value, when it was provided, of the consideration the company received for the issue of the interest.

amount returned is so much of the amount received as has been returned to a holder of the interest before the change occurs.

share capital account credit is the amount of any credit made to the company's share capital account in respect of the issue of the interest.

 (3) If the company has a *non‑share capital account at the beginning of 1 July 2001 because of a *non‑share equity interest the company issued before 1 July 2001, there is a credit to the non‑share capital account on that day for each non‑share equity interest in the company that:
 (a) was issued before 1 July 2001; and
 (b) is still in existence on 1 July 2001.

 (4) The amount of the credit under subsection (3) is:
where:

amount received is the market value, when it is provided, of the consideration the company receives for the issue of the interest.

return of amount received is the sum of the amounts paid before 1 July 2001 by way of return, in whole or in part, of the amount received.

share capital account credit is the sum of any amounts credited before 1 July 2001 to the company's share capital account in respect of the issue of the interest.

164‑20  Debits to non‑share capital account

 (1) The company may debit the whole or a part of a *non‑share distribution against the company's *non‑share capital account:
 (a) to the extent to which the distribution is made as consideration for the surrender, cancellation or redemption of a *non‑share equity interest in the company; or
 (b) to the extent to which:
 (i) the distribution is made in connection with a reduction in the market value of a non‑share equity interest in the company; and
 (ii) the amount of the distribution is equal to the amount of the reduction in market value.

 (2) The total of the amounts debited to the account in respect of a particular *non‑share equity interest must not exceed the total of the amounts credited to the account in respect of the interest.

 (3) If an *equity interest in the company changes at a particular time to a *debt interest in the company because of section 974‑110, there is a debit to the