Corporations Act 2001
254HResolution to convert shares into larger or smaller number
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254H Resolution to convert shares into larger or smaller number
(1) A company may convert all or any of its shares into a larger or smaller number of shares by resolution passed at a general meeting.
Note 1: The variation of class rights provisions (sections 246B‑246G) may apply to the conversion.
Note 2: Section 1230C applies to a CCIV instead of this section.
(2) The conversion takes effect on: (a) the day the resolution is passed; or (b) a later date specified in the resolution. (3) Any amount unpaid on shares being converted is to be divided equally among the replacement shares. (4) The company must lodge a copy of the resolution with ASIC within 1 month after it is passed. (5) An offence based on subsection (4) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.