Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 246C

Certain actions taken to vary rights etc.

 
Company with share capital
 
 
(1)
If the
shares in a class of shares in a company are divided into further classes, and
after the division the rights attached to all of those shares are not the
same: 
 
 
 
(a)
the division
is taken to vary the rights attached to every share that was in the class
existing before the division; and

(b)
members who hold shares to which the same rights are attached
after the division form a separate class. 

 
 
(2)
If the rights attached to some of the
shares in a class of shares in a company are varied: 
 
 
 
(a)
the variation is taken to vary the rights
attached to every other share that was in the class existing before the
variation; and

(b)
members who hold shares to which the same rights are attached
after the variation form a separate class. 

 
Company without share capital
 

(3)
If the members in a class of members in a company without share
capital are divided into further classes of members, and after the division
the rights of all of those members are not the same: 
 
 
 
(a)
the division is taken to vary the rights of
every member who was in the class existing before the division;
and

(b)
members who have the same rights after the division form a
separate class. 

 
 
(4)
If the rights of some of the members in
a class of members in a company without a share capital are varied: 

 
 
(a)
the variation is taken to
vary the rights of every other member who was in the class existing before the
variation; and

(b)
members who have the same rights after the variation form a
separate class. 

 
Company with 1 class of shares issuing new class of
shares
 
 
(5)
If a company with 1 class of shares
issues new shares, the issue is taken to vary the rights attached to shares
already issued if: 
 
 

(a)
the rights attaching to the new shares are not the same as the
rights attached to shares already issued; and

(b)
those rights are not provided for in: 

 
 
(i)
the
company's constitution (if any); or

(ii)
a notice, document or resolution that is lodged with ASIC.


 
 
(6)
If a company issues new preference
shares that rank equally with existing preference shares, the issue is taken
to vary the rights attached to the existing preference shares unless the issue
is authorised by: 
 
 

(a)
the terms of issue of the existing preference shares;
or

(b)
the company's constitution (if any) as in force when the existing
preference shares were issued.