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CORPORATIONS ACT 2001

CHAPTER 2H - SHARES  

PART 2H.1 - ISSUING AND CONVERTING SHARES  

SECTION 254H  RESOLUTION TO CONVERT SHARES INTO LARGER OR SMALLER NUMBER  

254H(1)  [Consolidation or division]  


A company may convert all or any of its shares into a larger or smaller number of shares by resolution passed at a general meeting.

Note: The variation of class rights provisions (sections 246B-246G) may apply to the conversion.

254H(2)  [Conversion]  


The conversion takes effect on:


(a) the day the resolution is passed; or


(b) a later date specified in the resolution.

254H(3)  [Unpaid amount]  


Any amount unpaid on shares being converted is to be divided equally among the replacement shares.

254H(4)  [Lodgment with ASIC]  


The company must lodge a copy of the resolution with ASIC within 1 month after it is passed.

254H(5)  [Strict liability offence]  

 View history reference

An offence based on subsection (4) is an offence of strict liability.

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

[CCH Note: The next section is s 254J.]


 



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