Section 121AH — Income Tax Assessment Act 1936: Demutualisation method 3

(1) Under demutualisation method 3, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares in the mutual insurance company are issued to another company (the holding company); and (c) shares (the ordinary shares) of only one class in: (i) the holding company; or (ii) another company (the ultimate holding company) of which the holding company is a wholly-owned subsidiary, either directly or through one or more other wholly-owned subsidiaries (each of which is an interposed holding company); are issued to each person in the policyholder/member group; and (d) 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 the main events, where this demutualisation method is used.