Victorian Consolidated Legislation

State Owned Enterprises Act 1992 - SECT 63

Issue of shares in converting body

63. Issue of shares in converting body



(1) The Treasurer must make a declaration in writing that the existing capital
of a converting body, as at a date specified in the declaration, is to be
dealt with in either or both of the following ways:

   (a)  Applied to paying up in full shares in the converting body;

   (b)  Converted into debt owed to the State by the converting body on such
        terms as the Treasurer specifies in the declaration.

(2) As soon as practicable after the Treasurer's declaration under subsection
(1), the converting body must issue the shares paid up in full to-

   (a)  the State;

   (b)  nominees of the State;

   (c)  a statutory corporation;

   (d)  a State owned company-

as the Treasurer directs in writing.

(3) The issue of shares under subsection (2) discharges, to the extent of the
nominal value of those shares, any obligation of the converting body existing
before the conversion to repay the existing capital to the State.

(4) The shares issued in accordance with subsection (2) are taken to have been
issued for valuable consideration other than cash, being the discharge
effected by subsection (3).