Commonwealth Consolidated Acts

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Valuation of financial benefits--convertible interests

             (1)  This section deals with the situation in which a * scheme gives rise to an * interest that will or may convert into an * equity interest in a company.

             (2)  The life of the interest ends no later than the time when it converts into that * equity interest.

             (3)  The possibility of the conversion is to be disregarded in working out the length of the life of the interest arising from the * scheme for the purposes of section 974- 35 if it is uncertain:

                     (a)  whether the interest will ever convert; or

                     (b)  when the interest will convert.

Note:          Section 974-40 deals with the situation in which a party to the scheme may exercise a right or option to convert the interest.

             (4)  This section does not limit subsection 974-35(2).

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