17Charges on shares

#### 17 Charges on shares (1) A share that is taken to be issued under section 16 in respect of a unit is subject to the same charges (if any) as the unit was subject to immediately before the conversion time. (2) The charge created by subsection (1): (a) is taken to be created at the conversion time; and (b) extends to dividends in respect of the share, if the charge on the unit extends to distributions on the unit; and (c) secures the same obligations as are secured by the charge on the unit. (3) If the unit was subject to more than one charge, then the charges on the share have the same priorities among themselves as the charges on the unit. (4) WoolStock Australia Limited must issue separate share certificates for: (a) shares that are subject to a charge because of this section; and (b) shares that are not subject to such a charge. (5) If: (a) an amount (the dividend amount) becomes payable by WoolStock Australia Limited in respect of the shares in WoolStock Australia Limited that are held by a person who is a registered equity holder; and (b) those shares are subject to one or more charges because of this section; and (c) the registered equity holder has authorised WoolStock Australia Limited to make payments under subsection 22R(4) of the Wool International Act; then the following provisions apply: (d) if the shares are subject to only one charge—WoolStock Australia Limited must pay to the beneficiary under the charge so much of the dividend amount as does not exceed the amount of the debt secured by the charge; (e) if the shares are subject to more than one charge—WoolStock Australia Limited must pay to the beneficiary under each charge so much of the dividend amount to meet the debt secured by that charge (having regard to the order of priority of the charges) as does not exceed the amount of the debt; (f) in either case—WoolStock Australia Limited must pay the balance of the dividend amount to the registered equity holder.