Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2h:p8
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2H (pt 8/165)
Character Range: 2415196–2418156

the holding company that are issued in connection with the demutualisation (the issued holding company shares), the total number that are issued to existing members constitutes at least 90% of the issued holding company shares; and
 (c) the accumulated surplus of the mutual entity is allocated or distributed in the form of shares, or cash from the sale of shares, to existing members in proportions that broadly accord with any one or more of the following:
 (i) the respective amounts contributed by the members to the entity;
 (ii) the respective values of the membership rights of the members;
 (iii) the respective rights of the members on the winding up of the entity.
 (3) In this section:
accumulated surplus, in relation to a demutualised entity, means the net assets of the entity on the demutualisation resolution day.

Subdivision 326‑C—CGT consequences of extinguishment of membership rights in mutual entity

Table of sections
326‑65 Extinguishment of membership rights

326‑65  Extinguishment of membership rights

Application
 (1) This section applies where membership rights are extinguished as mentioned in paragraph 326‑45(1)(a), 326‑50(1)(a), 326‑52(1)(a) or 326‑55(1)(a).

Modification
 (2) A capital gain or capital loss arising from the extinguishment of the membership rights of a member is to be disregarded.

Subdivision 326‑D—CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company

Table of sections
326‑70 Application of Subdivision
326‑75 Capital losses made from certain disposals to be disregarded
326‑80 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326‑85 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326‑90 Disposal by pre‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity
326‑95 Disposal by post‑CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share
326‑100 Disposal by pre‑CGT member of a demutualisation original share or a non‑demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326‑105 Disposal by pre‑CGT member of a demutualisation original