Section 121AC — Income Tax Assessment Act 1936: Mutual affiliate company

(1) A mutual affiliate company is a company that satisfies the following conditions: (a) it is limited by guarantee; (b) it is not an insurance company; (c) at least 75% of the policyholders of a mutual insurance company are members of it; (d) it did not divide its profits among its members during the 10 years ending on 9 May 1995; (e) on a winding-up, its profits are not divisible among its members in their capacity as such. (2) If the company is a mutual entity (within the meaning of the Corporations Act 2001) then, for the purposes of subsection (1), disregard the following: (a) any MCIs (within the meaning of that Act) issued by the company; (b) any dividends or profits paid or payable in respect of such MCIs; (c) any members of the company who are members by virtue of holding such MCIs.