CORPORATIONS ACT 2001 - SECT 254G Conversion of shares
CORPORATIONS ACT 2001 - SECT 254G
Conversion of shares(1) A company may:
- (a)
- convert an ordinary share into a preference share; and
- (b)
- convert a preference share into an ordinary share.
- Note: The variation of class rights provisions (sections 246B-246G) will apply to the conversion.
(2) A company can convert ordinary shares into preference shares only if the holders' rights with respect to the following matters are set out in the company's constitution (if any) or have been otherwise approved by special resolution of the company:
(3) A share that is not a redeemable preference share when issued cannot afterwards be converted into a redeemable preference share.