Commonwealth Banks Act 1959

As soon as practicable after the pre‑conversion time, the Commonwealth Bank must apply its capital, calculated immediately before the pre‑conversion time, in paying up in full shares in the Commonwealth Bank.

If the amount of the capital is not a multiple of the nominal value of a share, subsection (1) applies as if the amount were reduced to the nearest multiple of the nominal value of a share.

As soon as practicable after complying with subsection (1), the Commonwealth Bank must issue to the Commonwealth all the shares paid up under that subsection.

The shares issued under subsection (3) are to be taken to have been issued for valuable consideration other than cash.

The Commonwealth is not a member of Commonwealth Bank at any time before the conversion time merely because the Commonwealth holds shares in Commonwealth Bank.