(1) There is a roll - over if:
(i) an interest (the original interest ) in an * MDO (the original MDO ) as a member of the original MDO; for
(ii) a similar interest (the replacement interest ) in another MDO (the new MDO ) as a member of the new MDO; and
(b) both the original MDO and the new MDO are companies limited by guarantee; and
(c) the exchange is in consequence of a single * arrangement that satisfies subsection (3); and
(d) apart from the roll - over, the entity would make a * capital gain from a * CGT event happening in relation to its original interest; and
(e) the entity chooses to obtain the roll - over; and
(f) the entity acquired the original interest on or after 20 September 1985.
Note: The entity can obtain only a partial roll - over if the capital proceeds for its original interest include something other than its replacement interest: see section 124 - 990.
(2) In working out whether an original interest is exchanged for a similar interest, disregard a difference that consists only of a right to receive distributions of income or capital.
(a) result in the new * MDO becoming the sole * member of the original MDO; and
(b) be one in which participation was available on substantially
the same terms for all of the holders of interests as members of the original
MDO of a particular type.