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INCOME TAX ASSESSMENT ACT 1936 - SECT 121AH Demutualisation method 3

INCOME TAX ASSESSMENT ACT 1936 - SECT 121AH

Demutualisation method 3

  (1)   Under demutualisation method 3 , in connection with the implementation of the demutualisation:

  (a)   all membership rights in the mutual insurance company are extinguished; and

  (b)   shares in the mutual insurance company are issued to another company (the holding company ); and

  (c)   shares (the ordinary shares ) of only one class in:

  (i)   the holding company; or

  (ii)   another company (the ultimate holding company ) of which the holding company is a wholly - owned subsidiary, either directly or through one or more other wholly - owned subsidiaries (each of which is an interposed holding company );

    are issued to each person in the policyholder/member group; and

  (d)   the ordinary shares are listed within the listing period.

Note:   Other things may also happen in connection with the implementation of the demutualisation.

  (2)   The following diagram shows the main events, where this demutualisation method is used.

A diagram of Demutualisation method 3, in connection with the implementation of the demutualisation

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