Section 1238C — Corporations Act 2001: When debts arise in relation to redeemable shares

(1) For the purposes of section 588G, if a CCIV takes action set out in column 1 of an item of the following table, it incurs a debt at the time set out in column 2 of the item. When debts are incurred Item Column 1 Action of company Column 2 When debt is incurred 1 redeeming redeemable shares that are redeemable only at its option when the company exercises the option 2 issuing redeemable shares that are issued on terms that they are liable to be redeemed otherwise than only at its option when the shares are issued 3 converting under section 1230C a share that is not a redeemable share into a share that is liable to be redeemed otherwise than only at its option when the shares are converted (2) This section has effect in relation to a CCIV in addition to the table set out in subsection 588G(1A).