Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Under demutualisation method 7 , in connection with the implementation of the demutualisation of both a mutual insurance company and a mutual affiliate company:
(a) all membership rights in both companies are extinguished; and
(b) shares in the mutual insurance company and the mutual affiliate company are issued to another company (the holding company ); and
(c) shares (the ordinary shares ) of only one class in:
(ii) another company (the ultimate holding company ) of which the holding company is a wholly - owned subsidiary, either directly or through one or more other wholly - owned subsidiaries (each of which is an interposed holding company );
are either:
(iii) issued, at the election of each person in the policyholder/member group to the person or to a trustee to sell on behalf of the person; or
(iv) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and
(d) the trustee sells the ordinary shares and distributes the proceeds of the sale to the person, or distributes the ordinary shares to the person; and
(e) the ordinary shares are listed within the listing period.
Note: Other things may also happen in connection with the implementation of the demutualisation.
(2) The following diagram shows the main events, where this demutualisation method is used involving an election covered by subparagraph (1)(c)(iv).
