Commonwealth Consolidated Acts

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Simplified outline of this Subdivision

If a condition of the continuity of ownership test cannot be worked out for a company:

       (a)     because of its unequal share structure; or

      (b)     because of a holding company's unequal share structure;

an entity can choose to reconsider that condition in up to 3 ways.

The first way involves disregarding debt interests.

The second way involves disregarding debt interests and secondary share classes.

The third way involves disregarding those shares, and treating the remaining shares as carrying certain percentages of the rights to receive dividends and capital distributions.

The second way can only be tried after the first way, while the third way can only be tried after the second way.

Table of sections

Operative provisions

167-10      When this Subdivision applies

167-15      First way--disregard debt interests

167-20      Second way--also disregard secondary share classes

167-25      Third way--treat remaining shares as having fixed rights to dividends and capital distributions

167-30      Fixing rights if practicable to work out market values

167-35      Fixing rights if impracticable to work out market values etc.

167-40      The valuing times for conditions listed in subsection 167-10(1)

Operative provisions

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