Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A partner is taken to have * acquired all of the * shares before 20 September 1985 if the partner acquired all the partner's interests in the assets of the * business before that day and none of the assets is a * precluded asset.
(2) However, if at least one of the assets is a * precluded asset, the partner is taken to have * acquired a whole number of the * shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares) does not exceed:
• the total of the * market values of the partner's interests in the assets that are not * precluded assets, less any liabilities the company undertakes to discharge in respect of those interests;
• the total of the market values of the partner's interests in all the assets, less any liabilities the company undertakes to discharge in respect of those interests.
Note: There are rules for working out what are the liabilities in respect of an interest: see section 122 - 145.
(3) The first element of the partner's * cost base and * reduced cost base of each other * share is the total of the * market values of the partner's interests in the * precluded assets (less any liabilities the company undertakes to discharge in respect of those interests) divided by the number of the other shares.
(4) The * market value of an interest in an asset is worked out
when the partner * disposed of it. The * cost base or * reduced cost base of
an interest is worked out at the same time.