Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p10
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 10/22)
Character Range: 387263–389822

to be satisfied in both cases

Consequences for the company

124‑470 Consequences for the company

124‑440  Summary of rules

 (1) This Subdivision deals with 2 cases in which you can choose to obtain a roll‑over because of the reorganisation of a unit trust's affairs.

Note: Section 103‑25 tells you when you have to make the choice.

 (2) The first case is if you dispose of units in a unit trust to a company and the company issues you with shares. You can find the specific rules about this case in sections 124‑445 and 124‑450.

 (3) The second case is if your units in a unit trust are redeemed or cancelled and a company issues you with shares. You can find the specific rules about this case in sections 124‑455 and 124‑460.

 (4) There are some rules that apply in both cases: see section 124‑465.

 (5) There are also consequences for the company if you can choose to obtain a roll‑over: see section 124‑470.

[This is the end of the Guide.]

Disposal case

124‑445  Disposal of units in a unit trust for shares in a company

  You can choose to obtain a roll‑over if:

 (a) you are a member of a unit trust; and

 (b) you and at least one other entity (the exchanging members) own all the units in it; and

 (c) under a *scheme for reorganising its affairs, the exchanging members *dispose of their units in it to a company in exchange for *shares in the company (and nothing else);

and the requirements in sections 124‑450 and 124‑465 are satisfied.

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

124‑450  Other requirements to be satisfied

 (1) The company must own all the units in the unit trust just after all the exchanging members have *disposed of their units in the unit trust (the completion time).

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

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

 (b) a percentage of the *shares in the company that were issued to all the exchanging members that is equal to the percentage of the units in the unit trust (that were *disposed of to the company) that the member owned.

 (3) The ratio of:

 • the market value of each exchanging member's *shares in the company to the market value of the shares in the 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 units in the unit trust that were disposed of to the