Section 17 — Corporations Act 2001: Share capital

Background (transfer of certain amounts to share capital) (1) On registration of a transferring financial institution of a State or Territory as a company under clause 3 of the transfer provisions: (a) any amount of withdrawable share capital (within the meaning of the Financial Institutions Code of the State or Territory); and (b) any amount standing to the credit of its share premium account; and (c) any amount standing to the credit of its capital redemption reserve; immediately before the transfer date became part of the company’s share capital under clause 17 of the transfer provisions. Use of amount standing to credit of share premium account (2) The company may use the amount standing to the credit of its share premium account immediately before the transfer date (if any) to: (a) provide for the premium payable on redemption of debentures or redeemable preference shares issued before the transfer date; or (b) write off: (i) the preliminary expenses of the institution incurred before the transfer date; or (ii) expenses incurred, payments made, or discounts allowed before the transfer date, in respect of any issue of shares in, or debentures of, the institution.