Commonwealth Consolidated Acts

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Resolution to convert shares into larger or smaller number

             (1)  A company may convert all or any of its shares into a larger or smaller number of shares by resolution passed at a general meeting.

Note 1:       The variation of class rights provisions (sections 246B- 246G) may apply to the conversion.

Note 2:       Section 1230C applies to a CCIV instead of this section.

             (2)  The conversion takes effect on:

                     (a)  the day the resolution is passed; or

                     (b)  a later date specified in the resolution.

             (3)  Any amount unpaid on shares being converted is to be divided equally among the replacement shares.

             (4)  The company must lodge a copy of the resolution with ASIC within 1 month after it is passed.

             (5)  An offence based on subsection (4) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .

Note:       This Part does not apply to a CCIV: see section 1230D.


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