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CORPORATIONS ACT 2001

CHAPTER 2B - BASIC FEATURES OF A COMPANY  

PART 2B.7 - CHANGING COMPANY TYPE  

SECTION 162  CHANGING COMPANY TYPE  

162(1)  

A company may change to a company of a different type as set out in the following table by:


(a) passing a special resolution resolving to change its type; and


(b) complying with sections 163 and 164.
Allowed conversions[operative table]
 This type of company may change ...... to this type of company
1proprietary company limited by sharesunlimited proprietary company
  unlimited public company
  public company limited by shares
2unlimited proprietary companyproprietary company limited by shares (but only if, within the last 3 years, it was not a limited company that became an unlimited company)
  public company limited by shares (but only if, within the last 3 years, it was not a limited company that became an unlimited company)
  unlimited public company
3public company limited by sharesunlimited public company
  unlimited proprietary company
  proprietary company limited by shares
  no liability company (see subsection (2))
4company limited by guaranteepublic company limited by shares
  unlimited public company
  proprietary company limited by shares
  unlimited proprietary company
5unlimited public companypublic company limited by shares (but only if, within the last 3 years, it was not a limited company that became an unlimited company)
  proprietary company limited by shares (but only if, within the last 3 years, it was not a limited company that became an unlimited company)
  unlimited proprietary company
6public no liability companypublic company limited by shares (but only if all the issued shares are fully paid up)
  proprietary company limited by shares (but only if all the issued shares are fully paid up)

Note 1: A public company seeking to change to a proprietary company must comply with the requirements for proprietary companies set out in section 113.

Note 2: Other types of companies that were previously allowed can change type under the Part 10.1 transitionals.

162(2)  

A public company limited by shares may only convert to a no liability company if:


(a) the company's constitution states that its sole objects are mining purposes; and


(b) under the constitution the company has no contractual right to recover calls made on its shares from a shareholder who fails to pay them; and


(c) all the company's issued shares are fully paid up.

Note: Section 9 defines mining purposes and minerals.

162(3)  

The company must lodge a copy of the special resolution with ASIC within 14 days after it is passed.

162(3A)  

 View history reference
An offence based on subsection (3) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

162(4)  

 View history reference
A special resolution to change an unlimited company that has share capital to a company limited by shares may also provide that a specified portion of its uncalled share capital may only be called up if the company becomes a Chapter 5 body corporate.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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