Conversion of shares
(1) A CCIV may convert a share of any kind into a share of a kind mentioned in an item in column 1 of the following table if the requirements (if any) specified in column 2 of the item are met. Conversion of shares Item Column 1To convert a share into a share of this kind: Column 2These requirements must be met: 1 An ordinary share (other than a redeemable share) No specified requirements (but see Note 1) 2 A redeemable share The conversion has been approved by a special resolution of the sub‑fund of the CCIV to which the share is referable (see also Notes 1 and 2) 3 A preference share (other than a redeemable preference share) The holders’ rights with respect to the matters mentioned in subsection 254G(2) are set out in the CCIV’s constitution (if any) or have been otherwise approved by special resolution of the sub‑fund of the CCIV to which the share is referable (see also Note 1) Note 1: The variation of class rights provisions (sections 246B to 246G) will apply to the conversion. Note 2: For a director’s duty to prevent insolvent trading on converting shares into redeemable shares, see sections 588G and 1238C. (2) A CCIV may not convert a share into a redeemable preference share. (3) A CCIV may convert all or any of its shares into a larger or smaller number. Any amount unpaid on shares being converted is to be divided equally among the replacement shares. (4) This section replaces sections 254G and 254H for a CCIV.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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