Effect of change of type
(1) A change of type does not: (a) create a new legal entity; or (b) affect the company’s existing property, rights or obligations (except as against the members of the company in their capacity as members); or (c) render defective any legal proceedings by or against the company or its members. (2) On the change of type of a company from a company limited by guarantee to a company limited by shares: (a) the liability of each member and past member as a guarantor on the winding up of the company is extinguished; and (b) the members cease to be members of the company; and (c) if shares are to be issued to a person as specified in the list referred to in subsection 163(3): (i) the shares are taken to be issued to that person; and (ii) the person is taken to have consented to be a member of the company; and (iii) the person becomes a member of the company. Note: The company must maintain a register of members that complies with subsection 169(3).
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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