Section 121AF — Income Tax Assessment Act 1936: Demutualisation method 1

(1) Under demutualisation method 1, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares (the ordinary shares) of only one class in the mutual insurance company are issued to each person in the policyholder/member group; and (c) the ordinary shares are listed within the listing period. Note: Other things may also happen in connection with the implementation of the demutualisation. (2) The following diagram shows, where this demutualisation method is used, the issue of the shares to the policyholder/member group.