(1) This section operates if:
(a) a * cessation event happens to the * provisional head company of a * MEC group (the former head company ); and
(b) another company (the new head company ) is appointed as the provisional head company of the group under subsection 719-60(3).
(2) When the new head company is appointed:
(a) the * franking account of the former head company ceases to operate; and
(b) the new head company has a franking account; and
(c) any * franking surplus or * franking deficit in the franking account of the former head company just before the * cessation event happened becomes that of the new head company.