Section YC 19 — Income Tax Act 2007: Legislative conversion of foreign company of proprietors

YC 19 Legislative conversion of foreign company of proprietors When this section applies (1) This section applies if— (a) a company of proprietors is established by a statute of a legislature outside New Zealand; and (b) the company of proprietors becomes a limited liability company as a result of another statute. Proprietor acquiring voting or market value interest (2) Subsection (3) applies if— (a) a person acquires a voting interest or a market value interest in a company on the conversion of a company of proprietors; and (b) immediately before the conversion, the person was a proprietor of the company of proprietors and the person acquired the interest solely as a result of being a proprietor. Company and person treated as always having held interest (3) With effect from the date of acquisition but subject to section YC 10 ,— (a) the company of proprietors is treated as having been a company with shareholders at all times before the conversion; and (b) the person is treated as having held the voting interest or market value interest at all times before the conversion. Defined in this Act: company , market value interest , New Zealand , shareholder , voting interest , Compare: 2004 No 35 s OD 5B