Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A CCIV may convert a share of any kind into a share of a kind mentioned in an item in column 1 of the following table if the requirements (if any) specified in column 2 of the item are met.
Conversion of shares | ||
Item | Column 1 | Column 2 |
1 | An ordinary share (other than a redeemable share) | No specified requirements (but see Note 1) |
2 | The conversion has been approved by a special resolution of the sub - fund of the CCIV to which the share is referable (see also Notes 1 and 2) | |
3 | A preference share (other than a redeemable preference share) | The holders' rights with respect to the matters mentioned in subsection 254G(2) are set out in the CCIV's constitution (if any) or have been otherwise approved by special resolution of the sub - fund of the CCIV to which the share is referable (see also Note 1) |
Note 1: The variation of class rights provisions (sections 246B to 246G) will apply to the conversion.
Note 2: For a director's duty to prevent insolvent trading on converting shares into redeemable shares, see sections 588G and 1238C.
(2) A CCIV may not convert a share into a redeemable preference share.
(3) A CCIV may convert all or any of its shares into a larger or smaller number. Any amount unpaid on shares being converted is to be divided equally among the replacement shares.
(4) This section replaces sections 254G and 254H for a CCIV.