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Schedule 1—Mutual entities

Schedule 1 Mutual entities

   

Corporations Act 2001

1  Section 9

Insert:

mutual entity has the meaning given by section 51M.

2  After Division 6A of Part 1.2

Insert:

Division 6B Mutual entities

51M   Mutual entities

             (1)  A company is a mutual entity if:

                     (a)  the company is registered under this Act; and

                     (b)  the company’s constitution provides that a person has no more than one vote at a general meeting of the company for each capacity in which the person is a member of the company.

             (2)  To avoid doubt:

                     (a)  the requirement in paragraph (1)(b) does not fail to be satisfied merely because the company’s constitution provides that:

                              (i)  2 or more persons may together be joint members of the company; and

                             (ii)  those persons each have one vote at a general meeting of the company; and

                     (b)  that requirement does not fail to be satisfied merely because the company’s constitution provides that:

                              (i)  a person may vote as proxy or representative at a general meeting of the company; and

                             (ii)  as a result of voting as a proxy or representative, the person may have more than one vote at a general meeting of the company.

3  In the appropriate position in Chapter 10

Insert:

Part 10.38 Transitional provisions relating to Schedule 1 to the Treasury Laws Amendment (Mutual Reforms) Act 2019

   

1662   Application of amendments made by Schedule 1 to the Treasury Laws Amendment (Mutual Reforms) Act 2019

                   The amendments made by Schedule 1 to the Treasury Laws Amendment (Mutual Reforms) Act 2019 apply on and after the commencement of that Schedule.

4  Part 5 of Schedule 4 (heading)

Repeal the heading, substitute:

Part 5 Disclosure of the proposed demutualisation

5  Subclause 29(1) of Schedule 4

Omit:

             (1)  If a modification of the constitution of an unlisted company registered under clause 3 of the transition provisions is proposed and the modification would have the effect of:

                     (a)  varying or cancelling the rights of members, or a class of members, to the reserves of the company; or

                     (b)  varying or cancelling the rights of members, or a class of members, to the assets of the company on a winding up; or

                     (c)  varying or cancelling the voting rights of members or a class of members; or

                     (d)  otherwise varying or cancelling rights so that Part 2F.2 (Class rights) applies; or

                     (e)  allowing 1 of those variations or cancellations of rights;

the following rules apply:

substitute:

             (1)  If:

                     (a)  a modification of the constitution of an unlisted company registered under clause 3 of the transfer provisions is proposed; and

                     (b)  the unlisted company is a mutual entity; and

                     (c)  the modification would have the effect that the unlisted company would cease to be a mutual entity;

the following rules apply:

6  Subclause 29(2) of Schedule 4

Repeal the subclause.

7  Paragraph 29(4)(b) of Schedule 4

Omit “in the case of a proposed modification of the constitution of a company—”.

8  Subparagraph 29(4)(c)(i) of Schedule 4

Omit “or share issue”.

9  Subclauses 29(5), (6) and (7) of Schedule 4

Omit “or (2)”.

10  Subclause 30(1) of Schedule 4

Omit “does not have a mutual structure”, substitute “is not a mutual entity”.

11  Subclauses 30(2), (3), (4), (5) and (7) of Schedule 4

Repeal the subclauses.

12  Clause 31 of Schedule 4

Omit “or share issue”.

13  Paragraph 32(1)(c) of Schedule 4

Repeal the paragraph.

14  Paragraphs 32(1)(g), (h) and (i) of Schedule 4

Omit “or share issue”.

15  Paragraph 32(1)(k) of Schedule 4

Repeal the paragraph.

16  Paragraph 32(1)(l) of Schedule 4

Omit “or share issue”.

17  Paragraph 32(3)(b) of Schedule 4

Omit “or share issue”.

18  Paragraph 34(1)(d) of Schedule 4

Omit “modification; or”, substitute “modification.”.

19  Paragraph 34(1)(e) of Schedule 4

Repeal the paragraph.

20  Subparagraph 35(1)(c)(ii) of Schedule 4

Omit “or share issue”.