Section 121AK — Income Tax Assessment Act 1936: Demutualisation method 6

(1) Under demutualisation method 6, in connection with the implementation of the demutualisation of a life insurance company: (a) all membership rights in the company are extinguished; and (b) the whole of the life insurance business of the company is, under a scheme confirmed by the Federal Court of Australia, transferred to another company formed for the purpose; and (c) shares (the ordinary shares) of only one class in the other company are: (i) issued, at the election of each person in the policyholder/member group, to the person or to a trustee to sell on behalf of the person; or (ii) issued to a trustee, at the election of each person in the policyholder/member group, to distribute to the person or to sell on behalf of the person; and (d) the trustee sells the ordinary shares and distributes the proceeds of sale to the person or distributes the ordinary shares to the person; and (e) 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.