Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 16/64)
Character Range: 3333902–3336751

197‑35 Exclusion for transfers made in connection with demutualisations of insurance etc. companies
197‑37 Exclusion for transfers made in connection with demutualisations of private health insurers
197‑38 Exclusion for transfers connected with demutualisations of friendly society health or life insurers
197‑40 Exclusion for post‑demutualisation transfers relating to life insurance companies
197‑42 Exclusion for exploration credits

197‑5  Division generally applies to an amount transferred to share capital account from another account
 (1) Subject to subsection (2), this Division applies to an amount (the transferred amount) that is transferred to a company's *share capital account from another of the company's accounts, if the company was an Australian resident immediately before the time of the transfer.
Note: If a company has 2 or more share capital accounts, those accounts are taken to be a single account (see subsection 975‑300(2)).
 (2) The other provisions of this Subdivision may stop this Division from applying to some or all of the transferred amount. If those other provisions stop this Division from applying to only some of the transferred amount, this Division (other than this Subdivision) applies to the balance of the transferred amount as if only that balance of the amount had been transferred to the company's *share capital account.

197‑10  Exclusion for amounts that could be identified as share capital
  This Division does not apply to the transferred amount if it could, at all times before the transfer, be identified in the books of the company as an amount of share capital.

197‑15  Exclusion for amounts transferred under debt/equity swaps
 (1) Subject to subsection (2), this Division does not apply to the transferred amount if:
 (a) the transfer is under an *arrangement under which:
 (i) a person discharges, releases or otherwise extinguishes the whole or a part of a debt that the company owes to the person; and
 (ii) the discharge, release or extinguishment is in return for the company issuing *shares (other than redeemable preference shares) in the company to the person; and
 (b) the transfer is a credit to the *share capital account that is made because of the issue of the shares in return for the discharge, release or extinguishment of the debt.
 (2) If the transferred amount exceeds the lesser of:
 (a) the *market value of the *shares issued by the company; and
 (b) so much of the debt as is discharged, released or extinguished in return for the shares;
subsection (1) does not stop this Division from applying to the 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